# In the matter of Mohan Kmar Chimar Vs. Indian Base Metals & Co. Ltd. & Anr. CA (AT) (Insolvency) No. 105-2019

> NCLAT judgment dated 2019-02-01. Citation: TCN-2019-NCLAT-00814. The Appellant filed a grievance against the Respondent, Indian Base Metals Co. Ltd., for…

- **Court:** NCLAT
- **Order date:** 1 Feb 2019
- **Citation:** TCN-2019-NCLAT-00814
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mohan-kmar-chimar-vs-indian-base-metals-co-ltd-anr-ca-961af101

## Summary

### Background

The Appellant filed a grievance against the Respondent, Indian Base Metals Co. Ltd., for issuing a demand notice under Section 8(1) and filing an application under Section 9 of the I&B Code. The Adjudicating Authority (National Law Company Tribunal), Kolkata Bench, had previously held that the Respondent is a 'Financial Creditor' and allowed the Respondent to change the format for treating the application under Section 7. The appellant argues that an application under Section 9 cannot be converted to one under Section 7.

## Facts

The Respondent, Indian Base Metals Co. Ltd., issued a demand notice under Section 8(1) and filed an application under Section 9 of the I&B Code. The Adjudicating Authority (National Law Company Tribunal), Kolkata Bench, held that the Respondent is a 'Financial Creditor' and allowed the Respondent to change the format for treating the application under Section 7. The Appellant, Mohan Kumar Chimar, filed an appeal against this decision, arguing that an application under Section 9 cannot be converted to one under Section 7. The appellant also argued that the debt was barred by limitation. The key fact is the dispute over the conversion of the application from Section 9 to Section 7 and the applicability of the limitation period.

## Issues and analysis

### Issue 1: Whether an application under Section 9 of the I&B Code can be changed to an application under …

**Ratio:** Under Section 7 of the I&B Code, no advance notice or demand notice is required,

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**Reasoning:** The court reasoned that parties are always open to file Format-1, i.e., an application

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**Interpretation:** The court interpreted the provisions of Section 7 and Section 9 to allow for

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**Application:** The court applied the ratio to the facts by noting that the Respondent could

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** Mohan Kumar…
- **Respondents:** Indian Base…

## Timeline

- **2019-02-01 — Demand Notice…**: The Respondent, Indian Base Metals Co. Ltd., issued a demand notice under Section 8(1)…
- **2018-12-13 — Adjudicating Authority…**: The Adjudicating Authority (National Law Company Tribunal), Kolkata Bench, held that the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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