# In the matter of Ritu Murli Manohar Goyal Vs. SVG Fashions Ltd. & Anr. CA(AT)(Ins)No. 1340 of 2019

> NCLAT judgment dated 2020-05-22. Citation: TCN-2020-NCLAT-00257. The appeal was filed against the order dated 26th September, 2019 passed by the Adjudicating…

- **Court:** NCLAT
- **Order date:** 22 May 2020
- **Citation:** TCN-2020-NCLAT-00257
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ritu-murli-manohar-goyal-vs-svg-fashions-ltd-anr-ca-6edce3a7

## Summary

### Background

The appeal was filed against the order dated 26th September, 2019 passed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad, admitting the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 filed by SVG Fashions Ltd. (Operational Creditor) against Arpita Filaments Private Limited (Corporate Debtor). The appellant, Ritu Murli Manohar Goyal, one of the shareholders and director of the Corporate Debtor, challenged the initiation of the Corporate Insolvency Resolution Process (CIRP) primarily on the ground that the claim was barred by limitation.

## Facts

SVG Fashions Ltd. (Operational Creditor) claimed that it supplied various fabrics to Arpita Filaments Private Limited (Corporate Debtor) since 2013. Bills were raised and cleared by the Corporate Debtor without dispute until August 2013, when irregular payments began. In 2015, the Corporate Debtor issued signed cheques as security. Upon dishonor of the cheques, the Operational Creditor issued a demand notice on 19th March, 2018, claiming Rs. 43,96,593/- towards outstanding bills from 11th August, 2013 to 2nd September, 2013, plus interest. The Corporate Debtor denied liability, claiming missing cheques and raising concerns about the genuineness of letters issued to the bank for stopping payments. The Operational Creditor filed an application under Section 9 of the

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor under Section 9 of the I&B Code was …

**Ratio:** Article 137 of the Limitation Act, 1963 prescribes a limitation period of three years for

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**Reasoning:** The Appellate Tribunal reasoned that the date of default was 7th October, 2013, and the

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**Interpretation:** The interpretation of Article 137 of the Limitation Act, 1963, requires that

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**Application:** The ratio and reasoning were applied to the facts by determining that the

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## Parties

- **Judges:** Bansi Lal…; V. P. S…; +2 more
- **Appellants:** Ritu Murli…
- **Respondents:** Arpita Filaments…; SVG Fashion…
- **Advocates:** Keith Var…; Rakesh…; +2 more

## Timeline

- **2013-08-11 — Start of Outstanding…**: Bills started accumulating from 11th…
- **2013-10-07 — Date of D…**: The date of default was…

## 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)

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