The initiation of Corporate Insolvency Resolution Process is barred for defaults occurring within the suspension period under Section 10A of the Insolvency and Bankruptcy Code, 2016.

ORDER

PER: MANNI SANKARIAH SHANMUGA SUNDARAM, MEMBER (JUDICIAL)

1. The present Application is being filed under the section 9 of the Insolvency and Bankruptcy code 2016 (hereinafter referred to as the code) read with Rule 6 of the Insolvency and Bankruptcy (Application for Adjudication) Rules 2016 by the Operational Creditor i.e. Patel Integrated Logistics Limited for initiating the Corporate Insolvency Resolution Process (“CIRP”), declaring moratorium and for appointment of Interim Resolution Professional (“IRP”), against, Phoenix Express Private Limited, the Respondent/Corporate Debtor (“CD”) on the ground that the Corporate Debtor has defaulted in paying for the services rendered by the Applicant for the default in payment of the Operational Debt by Corporate Debtor to the tune of Rs. 3,40,34,147.10/- (Three Crore Forty Lakhs Thirty-Four Thousand One Hundred Forty Seven &Ten Paisa Only) arising out of the outstanding payments towards the unpaid invoices as well as contractual interest accrued thereon @21% p.a. calculated from each invoice due date till its part payment and/or 31.01.2024, in respect of the logistics services rendered to the Corporate Debtor.

2. The Corporate Debtor herein Phoenix Express Private Limited bearing CIN U63000DL2013PTC251865, incorporated under the provisions of the Companies Act 1956 is having its registered office at Kh. No-436, G/F, Vill- Rangpuri Near Western Green Farm, Barrie, New Delhi New Delhi DL 110037, India. Since the registered office of the Corporate Debtor is situated in New Delhi, this Tribunal having jurisdiction over the NCT of Delhi is the Adjudicating Authority under sub-section (1) of section 60 of the Code in relation to the prayer for initiation of Corporate Insolvency Resolution Process against the Corporate Debtor.

3. SUBMISSIONS OF THE APPLICANT/OPERATIONAL CREDITOR:

i. The Applicant is a company incorporated under the Companies Act, 1956 and is inter alia engaged in the business of logistic services, offering transportation of high-density cargo by air and surface within India.

ii. The Applicant submitted that in the month of November 2019, the Corporate Debtor approached the Operational Creditor for availing its logistic services, on credit basis. In pursuance thereof, the Operational Creditor provided Corporate Debtor detailed rates, terms and conditions for logistic services vide a Letter- cum-Agreement dated 15th November 2019 ("Agreement") and the same was duly accepted and signed by the Corporate Debtor. The said agreement was entered into for a period of three years with effect from 16th November 2019 to 15th November 2022.

iii. Accordingly, the Operational Creditor, from time to time and as when required by the Corporate Debtor, duly rendered its logistic services to the Corporate Debtor and simultaneously raised its invoices in respect thereof. It is pertinent to mention here that as per invoices raised by the Operational Creditor, the payments were to be made by the Corporate Debtor within 30 days from the date of invoice failing which the Corporate Debtor was liable to pay simple interest of 21% p.a. on the outstanding invoice amount.

iv. In lieu of the services rendered by the Operational Creditor, the Operational Creditor had raised the following invoices upon the Corporate Debtor, for the period between 15th December 2019 and 15th March 2020, the details whereof are as follows:

v. That after being in receipt of the said invoices, the Corporate Debtor made certain part payments towards some of the invoices, the details whereof are as follows:

a. As against Invoice No. B7BLR-00022874 at Sr. No. hereinabove, the Corporate Debtor made a payment of Rs. 10,95,026/- (Rupees Ten Lakh Ninety-Five Thousand and Twenty-Six Only) and the Operational Creditor has issued a credit