# In the matter of Ashoka Creations Limited vs. Lykos India Private Limited

> NCLAT judgment dated 2024-08-12. Citation: TCN-2024-NCLAT-00264. The appeal was filed by Ashoka Creations Limited, an Operational Creditor, against an order…

- **Court:** NCLAT
- **Order date:** 12 Aug 2024
- **Citation:** TCN-2024-NCLAT-00264
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashoka-creations-limited-vs-lykos-india-private-limited-0c8b7fbb

## Summary

### Background

The appeal was filed by Ashoka Creations Limited, an Operational Creditor, against an order dated 12.03.2024 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench-V) in CP (IB) No. 707 of 2020. The Adjudicating Authority had dismissed Section 9 application filed by Ashoka Creations Limited seeking admission of Corporate Debtor Lykos India Pvt. Ltd. into Corporate Insolvency Resolution Process (CIRP). The Operational Creditor and Corporate Debtor had a business relationship where the Operational Creditor purchased aluminium rods from the Corporate Debtor and sold copper cathodes to the Corporate Debtor. The Operational Creditor claimed that the Corporate Debtor defaulted on payments of Rs. 11.52 cr for goods supplied, including interest.

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## Facts

Ashoka Creations Limited (Operational Creditor) filed an appeal against Lykos India Private Limited (Corporate Debtor). The dispute arose from a business relationship where Ashoka Creations purchased aluminium rods from Lykos India and sold copper cathodes to them. Ashoka Creations claimed a default of Rs. 11.52 cr, including interest, for supplied goods. They issued a demand notice under Section 8 of the IBC, citing the date of default as 25.07.2016. Lykos India denied the debt and raised disputes. The Adjudicating Authority dismissed Ashoka Creations' Section 9 application, leading to the appeal. Ashoka Creations argued that 11 invoices were raised, and payments were chronologically allocated, with the Corporate Debtor acknowledging an outstanding balance. Lykos

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## Issues and analysis

### Issue 1: Whether the invoices raised by the …

**Ratio:** The period of limitation for an application under Section 9 of IBC is three years as

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**Reasoning:** The Adjudicating Authority and NCLAT found that the date of default was 25.07.2016, and

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**Interpretation:** Section 9 of the IBC, read with the Limitation Act, establishes a three-year

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**Application:** Since the date of default was 25.07.2016, and the Section 9 application was

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Ashoka Creations…
- **Respondents:** Lykos India…

## Timeline

- **2016-07-25 — Date of D…**: The date of default pleaded by the Operational Creditor in the Section 9 application and…
- **2019-10-18 — First Demand…**: The Operational Creditor issued the first…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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