# In the matter of Hydro Care Fluid Power Systems vs. Larsen and Toubro Ltd. I.A. No. 1531 of 2023 in Company Appeal (AT) (Insolvency) No.469 of 2023

> NCLAT judgment dated 2023-05-03. Citation: TCN-2023-NCLAT-00555. The appeal was filed against the order dated 13.01.2023, by which the application under…

- **Court:** NCLAT
- **Order date:** 3 May 2023
- **Citation:** TCN-2023-NCLAT-00555
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/hydro-care-fluid-power-systems-vs-larsen-and-toubro-ltd-ia-no-1531-of-2023-in-co-6324cd9c

## Summary

### Background

The appeal was filed against the order dated 13.01.2023, by which the application under Section 9 filed by the Appellant was rejected. The Appellant contended that there was acknowledgment by the Respondent via email dated 25.06.2019, indicating that the application was not time-barred and that the total amount of default exceeded the threshold limit. The email dated 25.06.2019 served as the basis of the Appellant's submission.

## Facts

Hydro Care Fluid Power Systems (Appellant) filed an appeal against Larsen & Toubro Ltd. (Respondent) challenging the rejection of their Section 9 application by the Adjudicating Authority. The Appellant claimed that an email from the Respondent dated 25.06.2019 acknowledged the debt and thus the application was not time-barred. The email indicated that payment of Rs.48,61,971/- would be made upon receipt of a full and final claim. However, the Appellant did not submit a full and final claim after the email and filed the Section 9 application in 2022, more than two years later. The Adjudicating Authority rejected the application, stating it was time-barred, as it related to invoices from 2010 to 2013. The Appellant argued that a deduction of Rs.22,77,000/- in the

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Section 9 application filed by the …

**Ratio:** An application under Section 9 of the IBC can be rejected if it is barred by limitation

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**Reasoning:** The court found that the Adjudicating Authority did not err in rejecting the Section 9

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**Interpretation:** Section 9 of the IBC allows operational creditors to initiate the corporate

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**Application:** The court applied the ratio to the facts by determining that the Section 9

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Hydro Care Fluid…
- **Respondents:** Larsen and Toubro…

## Timeline

- **2019-06-25 — Email Commun…**: Respondent sent an email acknowledging a debt of Rs.48,61,971/- subject to a full and…
- **2022-01-01 — Section 9 Application…**: Appellant filed a Section 9 application, which was later rejected by the Adjudicating…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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