# In the matter of Crown Tobacco Company Pvt. Ltd. Vs. Crale Foodlinks Pvt. Ltd. & Ors. Company Appeal (AT) (Insolvency) No. 951 of 2020

> NCLAT judgment dated 2021-09-30. Citation: TCN-2021-NCLAT-00078. The case involves an appeal against an order dated 21.09.2020 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 30 Sept 2021
- **Citation:** TCN-2021-NCLAT-00078
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/crown-tobacco-company-pvt-ltd-vs-crale-foodlinks-pvt-ltd-ors-company-appeal-158fc581

## Summary

### Background

The case involves an appeal against an order dated 21.09.2020 passed by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, which dismissed a company petition (C.P. (IB) 388/2018) filed by Crown Tobacco Company Pvt. Ltd. (Operational Creditor) against Crale Foodlinks Pvt. Ltd. (Corporate Debtor). The Appellant, Crown Tobacco Company, claimed outstanding dues from the Respondent, Crale Foodlinks, based on a Business Conducting Agreement (BCA) and subsequent supplemental agreements. The NCLT dismissed the petition, holding that the company petition was not maintainable and liable to be dismissed, primarily due to limitation issues concerning the claims.

## Facts

Crown Tobacco Company Pvt. Ltd. (Appellant) and Crale Foodlinks Pvt. Ltd. (Respondent No. 1/Corporate Debtor) entered into a Business Conducting Agreement (BCA) on 29.04.2010, followed by two supplemental agreements dated 30.04.2010. The BCA initially had a term of 5 years, later extended by 2 years, expiring on 30.09.2017. The extension included a revision of the monthly Business Conducting Fee. The Appellant possessed licenses for a restaurant, bar, bakery, and eating house at Pioneer House in Bandra, Mumbai. The Appellant claimed that the Respondent failed to pay the monthly conducting fee and utility bills for August and September 2017, as well as municipal assessment taxes from June 2010 to September 2017, totaling Rs. 35,52,022/-. The Appellant sent a demand

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority (NCLT) was correct in dismissing the company petition filed by …

**Ratio:** The principle of limitation dictates that legal claims must be brought within a specified

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**Reasoning:** The Adjudicating Authority found that the company petition was filed on 12.03.2018, and

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**Interpretation:** The interpretation of limitation laws requires a strict assessment of the dates

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**Application:** In this case, the NCLAT agreed with the NCLT's finding that the claims for

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## Parties

- **Judges:** Anant Bijay…; Shreesha…; +1 more
- **Appellants:** Crown Tobacco…
- **Respondents:** Crale Foodlinks…

## Timeline

- **2010-04-29 — Business Conducting…**: Crown Tobacco Company Pvt. Ltd. and Crale Foodlinks Pvt. Ltd. entered into a Business…
- **2010-04-30 — Supplemental A…**: Two Supplemental Agreements were…

## 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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