# In the matter of ADS Resources Limited Vs. Shilpi Cables Technologies Ltd. Company Appeal (AT) (Insolvency) No. 1070 of 2020

> NCLAT judgment dated 2022-04-04. Citation: TCN-2022-NCLAT-00557. The case involves an appeal against an order dated 17.07.2020, passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 4 Apr 2022
- **Citation:** TCN-2022-NCLAT-00557
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ads-resources-limited-vs-shilpi-cables-technologies-ltd-company-appeal-6c53e9ee

## Summary

### Background

The case involves an appeal against an order dated 17.07.2020, passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, which dismissed I.A. No. 2387 of 2020 in Company Petition No. (IB) 64/PB/2017. The appellant, ADS Resources Limited, filed a claim against the corporate debtor, Shilpi Cables Technologies Ltd., which was rejected by the liquidator. The appellant had supplied various products to the corporate debtor and made advance payments to the supplier on behalf of the corporate debtor. The liquidator rejected the claim based on the books of accounts of the corporate debtor and supporting documents. The appellant then filed an application before the NCLT, which was also dismissed, leading to the current appeal.

## Facts

ADS Resources Limited (Appellant) supplied products to Shilpi Cables Technologies Ltd. (Corporate Debtor). The Appellant entered into two purchase contracts in 2016 for supply of "Trolley Wire Drawing Line" and "Planetary Stranding Line". The goods were destined to ICD Rewari, India, with shipment to be completed within 3 months of advance payment. The Appellant raised proforma invoices against the order placed by the Corporate Debtor. The Appellant made advance payments totaling USD 12,03,750 on behalf of the Corporate Debtor to the supplier in Hong Kong. The supplier raised a claim of USD 1,41,250 on the Appellant. The Corporate Debtor made partial payments against the proforma invoices, leaving a balance of USD 5,38,208.61. The Appellant

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in dismissing I.A. No. 2387 of 2020 filed by the …

**Ratio:** The ratio is based on the principle that claims must be filed within the stipulated time

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**Reasoning:** The court reasoned that the Appellant filed the claim belatedly, after the stipulated

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**Interpretation:** The interpretation is that the IBC mandates a time-bound resolution process,

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**Application:** In this case, the Appellant filed the claim after a significant delay, which

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## Parties

- **Judges:** Anant Bijay…; Shreesha…
- **Appellants:** ADS Resources…
- **Respondents:** Shilpi Cables…

## Timeline

- **2016-08-19 — Purchase Co…**: Appellant entered into a purchase contract with…
- **2016-09-09 — Purchase Co…**: Appellant entered into a purchase contract with…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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