# In the matter of New Bharat Refractories Ltd. Vs. Dhendai Tea and Industries Pvt. Ltd. CA(AT)(Ins) No. 1161 of 2019

> NCLAT judgment dated 2019-12-12. Citation: TCN-2019-NCLAT-00026. The case involves an appeal against the order of the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 12 Dec 2019
- **Citation:** TCN-2019-NCLAT-00026
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/new-bharat-refractories-ltd-vs-dhendai-tea-and-industries-pvt-ltd-ca-ab6711fa

## Summary

### Background

The case involves an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), Kolkata Bench, which dismissed an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, by New Bharat Refractories Ltd. (Financial Creditor) against Dhendai Tea and Industries Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority dismissed the application on the ground that it was barred by limitation.

## Facts

New Bharat Refractories Ltd. (Financial Creditor) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Dhendai Tea and Industries Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority, Kolkata Bench, dismissed the application, stating it was barred by limitation. The Appellant, New Bharat Refractories Ltd., argued that evidence suggested the debt was payable and not time-barred. The Respondent, Dhendai Tea and Industries Pvt. Ltd., argued that the application under Section 7 was barred by limitation. The record showed the date of default, and the application was filed on 10th October, 2018. The loan amount became due and payable after the expiry of the period on 31st March, 2015.

## Issues and analysis

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

**Ratio:** The principle of limitation dictates that legal actions must be brought within a

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**Reasoning:** The court reasoned that the application under Section 7 was filed on 10th October, 2018,

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**Interpretation:** The interpretation of Section 7 of the IBC, read with the law of limitation,

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**Application:** In this case, the application was filed more than three years after the loan

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** New Bharat…
- **Respondents:** Dhendai Tea and…

## Timeline

- **2015-03-31 — Loan Due…**: Loan amount became due and payable…
- **2018-10-10 — Application…**: Application under…

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