# In the matter of Jord Engineers India Limited Vs. Valia & Co. Company Appeal (AT) (Insolvency) No. 158 of 2017

> NCLAT judgment dated 2022-08-30. Citation: TCN-2022-NCLAT-00251. The appeal was filed by the Corporate Debtor against the order dated 31.07.2017 passed by the…

- **Court:** NCLAT
- **Order date:** 30 Aug 2022
- **Citation:** TCN-2022-NCLAT-00251
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jord-engineers-india-limited-vs-valia-co-company-appeal-2eabc0ec

## Summary

### Background

The appeal was filed by the Corporate Debtor against the order dated 31.07.2017 passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench), which admitted an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the Operational Creditor. The operational debt claimed was Rs. 4,82,98,924/- accrued on account of supply of Iron, Steel Goods, and Raw material. The Corporate Debtor was referred to as a sick unit on 09.11.2005 by BIFR, and the Sick Industrial Companies (Special Provisions) Repeal Act, 1985 was brought into force on 01.12.2016. The Operational Creditor served a statutory notice dated 26.04.2017 under Section 8 of the Code. The Corporate Debtor raised the issue of limitation, arguing that the default was of the

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## Facts

Jord Engineers India Limited (Corporate Debtor) appealed against the order of the Adjudicating Authority (NCLT, Mumbai Bench) dated 31.07.2017, which admitted an application filed by Valia & Co. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed an operational debt of Rs. 4,82,98,924/- for the supply of Iron, Steel Goods, and Raw material to the Corporate Debtor. The Corporate Debtor was referred to as a sick unit by BIFR on 09.11.2005. The Sick Industrial Companies (Special Provisions) Act, 1985 was repealed on 01.12.2016. The Operational Creditor served a statutory notice on 26.04.2017. The Corporate Debtor argued that the application was barred by limitation since the default occurred in 2011-12,

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## Issues and analysis

### Issue 1: Whether the application filed under Section …

**Ratio:** The limitation period for filing an application under Section 9 of the Code is three

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**Reasoning:** The court reasoned that the Corporate Debtor was referred to as a sick unit by BIFR on

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**Interpretation:** The interpretation of Section 22 of SICA is crucial. It provides for the

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**Application:** The court applied the ratio to the facts by considering that the SICA Act was

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## Parties

- **Judges:** Rakesh Kuma…; Alok Sriv…; +1 more
- **Respondents:** JORD ENGINEERS…; VALIA &…
- **Advocates:** Arvind Kr.…; Henna G…; +3 more

## Timeline

- **2005-11-09 — Corporate Debtor…**: The Corporate Debtor, Jord Engineers India Limited, was referred to the Board for…
- **2016-12-01 — Repeal of…**: The Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) was repealed, lifting…

## 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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