# In the matter of R.B Synthetics & Anr. Vs. Bee Ceelene Textile Mills Pvt. Ltd. CA(AT)(Ins)No. 1389 of 2019

> NCLAT judgment dated 2019-12-02. Citation: TCN-2019-NCLAT-00066. R.B. Synthetics & Anr. (Financial Creditors) filed an application under Section 7 of the…

- **Court:** NCLAT
- **Order date:** 2 Dec 2019
- **Citation:** TCN-2019-NCLAT-00066
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/rb-synthetics-anr-vs-bee-ceelene-textile-mills-pvt-ltd-ca-94c103b6

## Summary

### Background

R.B. Synthetics & Anr. (Financial Creditors) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against M/s. Bee Ceelene Textile Mills Private Limited. The Adjudicating Authority (National Company Law Tribunal) Ahmedabad Bench, Ahmedabad, rejected the application on the ground of limitation. The Appellants argued they were entitled to an extension of the period under Section 5 of the Limitation Act, 1963, as they had sufficient cause for not preferring the application within the period, citing a pending dispute and petition filed under Sections 397 and 398 of the Companies Act, 1956. The Adjudicating Authority found that the default occurred in 2012, and the application was filed on

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## Facts

R.B. Synthetics & Anr. (Financial Creditors) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process against Bee Ceelene Textile Mills Private Limited. The Adjudicating Authority, Ahmedabad Bench, rejected the application based on limitation. The Appellants argued for an extension under Section 5 of the Limitation Act, 1963, citing a pending dispute under Sections 397 and 398 of the Companies Act, 1956. The default occurred in 2012, and the application was filed on October 5, 2017. The Adjudicating Authority relied on the Supreme Court's decision in B.K. Educational Services (P) Ltd. vs. Parag Gupta & Associates, stating that the Limitation Act applies to Section 7 applications and

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## Issues and analysis

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

**Ratio:** The Limitation Act is applicable to applications filed under Sections 7 and 9 of the

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**Reasoning:** The court relied on the Supreme Court's decision in B.K. Educational Services (P) Ltd.

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**Interpretation:** The interpretation of the Limitation Act in conjunction with the I&B Code

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**Application:** In this case, the default occurred in 2012, and the application was filed in

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…; +1 more
- **Appellants:** R.B. Synthetics &…
- **Respondents:** Bee Ceelene…; Bee Ceelene…

## Timeline

- **2012-01-01 — Default Oc…**: The default by the corporate…
- **2017-10-05 — Application…**: R.B. Synthetics & Anr. filed an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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