# In the matter of Laxmi Trading Corporation vs. Hindustan Construction Company Limited

> NCLAT judgment dated 2024-02-27. Citation: TCN-2024-NCLAT-00615. Laxmi Trading Corporation (LTC), an operational creditor, filed an appeal against the…

- **Court:** NCLAT
- **Order date:** 27 Feb 2024
- **Citation:** TCN-2024-NCLAT-00615
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/laxmi-trading-corporation-vs-hindustan-construction-company-limited-9f2e5338

## Summary

### Background

Laxmi Trading Corporation (LTC), an operational creditor, filed an appeal against the impugned order dated 25.08.2023 passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which dismissed their application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. LTC had supplied hardware tools, rubber goods, pipes, and fittings to Hindustan Construction Company Limited (HCCL), the corporate debtor, between 2010 and 2019. Despite issuing invoices totaling Rs.3,71,55,764.8, HCCL made partial payments amounting to Rs.2,17,47,092.13, leaving a shortfall of Rs.1,54,08,672.77. LTC issued a demand notice on 17.03.2020, claiming Rs.3,73,32,239.30, including interest. The NCLT dismissed the application, leading to the appeal.

## Facts

M/s Laxmi Trading Corporation (LTC), the operational creditor, supplied hardware tools, rubber goods, pipes, and fittings to M/s Hindustan Construction Company Limited (HCCL), the corporate debtor. The supplies were made between 2010 and 2019. LTC raised invoices totaling Rs.3,71,55,764.8. HCCL made partial payments of Rs.2,17,47,092.13, leaving a shortfall of Rs.1,54,08,672.77. LTC issued a demand notice on 17.03.2020 for Rs.3,73,32,239.30, including interest calculated at 24% p.a. up to 29.02.2020. HCCL failed to reply to the demand notice. LTC filed an application before the NCLT, New Delhi, which was dismissed. The invoices were issued for six different projects. The due dates for the last invoices for Kashang Hydro Electric Project and Uri Project were 28.06.2014

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## Issues and analysis

### Issue 1: Whether the claims made by the operational …

**Ratio:** The period of limitation for application under Section 9 of the IBC is governed by

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**Reasoning:** The court relies on precedents set by the Supreme Court and the NCLAT, which have

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**Interpretation:** Article 137 of the Limitation Act provides a three-year limitation period for

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**Application:** In this case, the court finds that the due dates for the majority of the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** M/s Laxmi Trading…
- **Respondents:** Hindustan…; M/s Hindustan…

## Timeline

- **2010-01-01 — Supply of…**: Laxmi Trading Corporation supplied hardware tools, rubber goods, pipes, and fittings to…
- **2019-01-01 — Supply of…**: Laxmi Trading Corporation supplied hardware tools, rubber goods, pipes, and fittings to…

## 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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