# In the matter of M/s. Advance Engineering Services
Vs. 
The Baroda Rayon Corporation Ltd. Company Appeal (AT) (Insolvency) No. 222 of 2021

> NCLAT judgment dated 2022-05-13. Citation: TCN-2022-NCLAT-00484. The appeal was filed by Advance Engineering Services, an operational creditor, against the…

- **Court:** NCLAT
- **Order date:** 13 May 2022
- **Citation:** TCN-2022-NCLAT-00484
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ms-advance-engineering-services-vs-the-baroda-rayon-corporation-ltd-company-appe-a70ef6b2

## Summary

### Background

The appeal was filed by Advance Engineering Services, an operational creditor, against the rejection of its Section 9 application under the Insolvency and Bankruptcy Code (IBC) by the National Company Law Tribunal (NCLT), Ahmedabad Bench. The application pertained to an operational debt allegedly owed by The Baroda Rayon Corporation Limited. The NCLT rejected the application on the grounds of limitation.

## Facts

Advance Engineering Services, a sole proprietorship firm, performed flooring work for The Baroda Rayon Corporation Limited at its Fateh Nagar, Udhna plant. The work order was issued on 2004-07-12. The appellant completed the work and received some payments. A fax dated 2007-06-19 indicated that Rs. 39,00,631.50 was owed for the period 2003-04-01 to 2004-09-30. The appellant claimed the respondent acknowledged the debt through fax messages and handwritten acknowledgments. After not receiving the due amount, the appellant issued a demand notice under Section 8 of the IBC and filed a company petition, which was contested by the respondent on the grounds of limitation. The respondent argued that the letters presented by the appellant were forged and fabricated, citing

…

## Issues and analysis

### Issue 1: Whether the Section 9 application filed by the Appellant was barred by limitation under the …

**Ratio:** Section 18 of the Limitation Act requires a clear acknowledgment of debt within the

…

**Reasoning:** The court reasoned that the acknowledgments presented by the appellant were not clear and

…

**Interpretation:** The court interpreted Section 18 of the Limitation Act to require a clear and

…

**Application:** The court applied the ratio to the facts by finding that the documents

…

## Parties

- **Judges:** Ashok Bh…; Alok Sriv…
- **Appellants:** M/s. Advance…
- **Respondents:** The Baroda Rayon…; The Baroda Rayon…

## Timeline

- **2004-07-12 — Work Order…**: The respondent company issued a work…
- **2004-09-30 — Debt Owe…**: As per the respondent's ledger, Rs. 39,00,631.50 was owed to the appellant for the period…

## Legal provisions

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

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/ms-advance-engineering-services-vs-the-baroda-rayon-corporation-ltd-company-appe-a70ef6b2