# In the matter of Alkas Spinning MIlls Private Limited IBA-1180-2019

> NCLT judgment dated 2020-05-05. Citation: TCN-2020-NCLT-01378. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 5 May 2020
- **Citation:** TCN-2020-NCLT-01378
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/alkas-spinning-mills-private-limited-iba-1180-2019-69764461

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, by M/s. Superfine Bleaching Company Limited (Operational Creditor) against M/s. Alkas Spinning Mills Private Limited (Corporate Debtor). The Operational Creditor sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, declare a moratorium, and appoint an Interim Resolution Professional. The Operational Creditor claimed a total debt of Rs. 38,37,972/-, inclusive of interest at 24% p.a., which was due and payable by the Corporate Debtor. The debt arose from the supply of cotton fibre and related goods by the Operational Creditor to the

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## Facts

M/s. Superfine Bleaching Company Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Alkas Spinning Mills Private Limited (Corporate Debtor). The Operational Creditor claimed a debt of Rs. 38,37,972/-, inclusive of 24% p.a. interest, arising from the supply of cotton fibre and related goods during 2016, supported by 24 invoices. The Corporate Debtor allegedly failed to make payments within 7 days of the goods being ready, as per the invoice terms. The Operational Creditor issued a demand notice on 19.03.2019. The Corporate Debtor allegedly undertook to settle the outstanding amount on 25.03.2019 and deposited Rs. 1,00,000/- on 31.05.2019.

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## Issues and analysis

### Issue 1: Whether the application filed by the …

**Ratio:** Section 238A of the IBC, 2016, states that the Limitation Act, 1963, shall apply to

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**Reasoning:** The NCLT considered the dates of the invoices, the demand notice, and the filing of the

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**Interpretation:** The Limitation Act, 1963, applies to applications filed under the IBC, 2016.

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**Application:** The NCLT applied the provisions of the Limitation Act to the facts of the case

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Respondents:** Alkas Spinning…

## Timeline

- **2016-01-01 — Supply of…**: The Operational Creditor supplied cotton fibre and related goods to the Corporate Debtor…
- **2019-03-19 — Demand Notice…**: The Operational Creditor issued a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 19 — Personnel to extend co-operation to interim…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-19)

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