Just few days after the initiation of Corporate Insolvency Resolution Process of Supertech, Jaypee and Mascot Soho, the NCLT, New Delhi on April 1, 2022, declared another Noida based Real Estate Developer Logix city Developers Private Limited (“Logix”) as insolvent vide its order and appointed the Interim Resolution Professional.

In the instant case, Colliers International (India) Property Services Pvt. Ltd. (“Operational Creditor“) entered into an agreement dated 05.07.2011 with Logix for the project management consultancy services at the “Blossom Zest” project situated at Sector 143, Noida. The Operational Creditor sent a reminder email to pay the operational debt of Rs. 1.08 crores and thereafter sent a demand notice under section 8 of the Insolvency and bankruptcy code, 2016 (“IBC”) to repay the operational debt. Logix accepted the liability and did not raise any dispute. Subsequently, petition under Section 9 of the IBC was filed by the Operational Creditor. Logix filed a reply and there also it has admitted the default of the operational debt.

The NCLT observed that there are two requirements for admission of section 9 petition that there is a default of a debt and there is a no pre existing dispute. Since Logix in the present case admitted the default of the operational debt both in reply to demand and in reply to the Section 9 petition. Therefore, both the conditions of a Section 9 petition are fulfilled and the petition by the Operational Creditor is admitted. Accordingly, the CIRP is initiated and Interim Resolution Professional is appointed by NCLT.