Authority: National Company Law Tribunal, Mumbai Bench Court III

Order Date: 10 June 2026

Case Overview

The Operational Creditor, Cross World Global Technology Limited (Nigeria-based power infrastructure company), filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, All Cargo Logistics Limited (Indian logistics company). The dispute arose from a Logistic Service Agreement dated 01.06.2021 for transportation of transformers and accessories from Apapa, Lagos Port to Ojo, Lagos, Nigeria, with a total contract value of USD 572,916.00.

The Operational Creditor claimed outstanding operational debt of USD 365,932.94 (₹3.05 crore at exchange rate 1 USD = ₹83.52) through three invoices:

  • Invoice CWGT/AC/210/001 dated 02.09.2021: USD 144,097.94
  • Invoice CWGT/AC/210/002 dated 02.09.2021: USD 62,887.00
  • Invoice PI/CWGT/AC/210/007 dated 12.10.2021: USD 158,948.00

The Operational Creditor delivered materials on 15.08.2021 and issued final invoices on 02.09.2021, which were acknowledged by Mr. Ashish Agarwal, General Manager of All Cargo, via email on 12.09.2021. A demand notice was sent on 25.08.2023 and delivered on 31.08.2023 via DHL courier to the Corporate Debtor's registered address.

The Corporate Debtor raised multiple objections:

  • Claimed payments totaling USD 429,229.55 had been made, leaving USD 34,026 receivable from the Operational Creditor
  • Disputed receipt and validity of Invoice PI/CWGT/AC/210/007 for USD 158,948.00
  • Asserted that the logistics business had been transferred to J.M. Baxi Heavy Pvt. Ltd. and liabilities should be borne by them
  • Challenged the service of demand notice and timing of petition filing

Discussions & Findings

The Tribunal examined email correspondence which showed only two invoices (CWGT/AC/210/001 and CWGT/AC/210/002) were communicated on 02.09.2021, with no evidence of Invoice PI/CWGT/AC/210/007 being shared via email. The Operational Creditor claimed this invoice was sent via WhatsApp but provided no screenshots or evidence.

The ledger account showed the Operational Creditor had received advance payments: USD 49,990 on 14.07.2021 and USD 94,087.94 on 30.07.2021 against Invoice CWGT/AC/210/001, and USD 62,887 on 11.10.2021 against Invoice CWGT/AC/210/002.

The Tribunal noted anomalies in the billing pattern where the total invoices raised (USD 761,136.49) exceeded the contract value (USD 572,916.00) without explanation of scope increase. Invoice PI/CWGT/AC/210/007 appeared to be a consolidated invoice duplicating previous invoices.

The Tribunal referenced the Mobilox Innovations vs Kirusa Software case, establishing that a genuine pre-existing dispute renders an insolvency petition non-maintainable. The Corporate Debtor successfully demonstrated a plausible dispute regarding the validity and service of the USD 158,948 invoice.

Final Outcome

The Company Petition (IB) 734/MB/C-III/2024 was dismissed. The Tribunal found the Corporate Debtor had established a genuine pre-existing dispute regarding the operational debt, particularly concerning Invoice PI/CWGT/AC/210/007 for USD 158,948.00, making the insolvency petition non-maintainable under Section 9 of the IBC.

Topics: Insolvency Proceedings, Disputed Invoices, Logistics Contract