# In the matter of K.P. Jayaram and Anr. Vs. Radha Exports (India) Pvt. Ltd. CA(AT)(Insolvency) No. 224-2019

> NCLAT judgment dated 2019-09-02. Citation: TCN-2019-NCLAT-00317. The case involves an appeal against the Adjudicating Authority's (National Company Law…

- **Court:** NCLAT
- **Order date:** 2 Sept 2019
- **Citation:** TCN-2019-NCLAT-00317
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/kp-jayaram-and-anr-vs-radha-exports-a02a950c

## Summary

### Background

The case involves an appeal against the Adjudicating Authority's (National Company Law Tribunal, Chennai) order dated 19th December 2018, which rejected an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code'). The Adjudicating Authority rejected the application on the grounds that it was barred by limitation and no financial debt existed. The Appellants, Mr. K.P. Jayaram and Mrs. Shoba Jayaram, claimed to be 'Financial Creditors', asserting that the debt was not barred by limitation. The Corporate Debtor, M/s. Radha Exports (India) Private Limited, argued that the total amount had been paid and that certain amounts were paid in favor of Customs, Chennai, and one Mr. Kulasekaran, disputing that the payments were for 'Financial

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## Facts

Mr. K.P. Jayaram and Mrs. Shoba Jayaram filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against M/s. Radha Exports (India) Private Limited ('Corporate Debtor'). The Adjudicating Authority (National Company Law Tribunal), Division Bench, Chennai, rejected the application on 19th December 2018, stating it was barred by limitation and no financial debt existed. The Appellants claimed to be 'Financial Creditors', arguing the debt wasn't barred by limitation. The Corporate Debtor presented a 'Correlation Statement' showing payments, including amounts to Customs, Chennai (Rs. 53,05,000) and Mr. Kulasekaran (Rs. 1,75,000). The Assistant Commissioner of Income Tax found Rs. 90,00,000 advanced by Smt. Shobha Jayaram to the proprietary concern

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, was barred by …

**Ratio:** The claim of the Appellants is not barred by limitation as at appropriate stage, the

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**Reasoning:** The tribunal reasoned that the Appellants had initially pursued a winding-up petition

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**Interpretation:** The interpretation focuses on the transition from the Companies Act to the

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**Application:** The tribunal applied this reasoning to the facts by noting that the Appellants

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +2 more
- **Appellants:** K.P. JA…
- **Respondents:** M/s. Radha…; M/s. Radha…
- **Advocates:** M.K.S M…; Arijit Ma…; +1 more

## Timeline

- **2018-12-19 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal, Chennai) rejected the…
- **2017-12-07 — Demand Notice…**: Demand Notice was issued by the Appellants to the ‘Corporate Debtor' on 7th December,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 3(12) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-3)

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