# In the matter of Avesthagen Limited C.P. (IB) No. 175-BB-2018

> NCLT judgment dated 2019-05-09. Citation: TCN-2019-NCLT-03374. The case involves a petition filed by Shri Naresh P. Mathur, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 9 May 2019
- **Citation:** TCN-2019-NCLT-03374
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avesthagen-limited-cp-ib-no-175-bb-2018-973738f6

## Summary

### Background

The case involves a petition filed by Shri Naresh P. Mathur, an operational creditor, against M/s. Avesthagen Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed a default of Rs. 46,59,991/-. The corporate debtor contested the petition, citing issues of limitation, pending winding-up petitions before the High Court, and disputes regarding confidentiality agreements and company properties.

## Facts

Shri Naresh P. Mathur, the operational creditor, filed a petition against M/s. Avesthagen Limited, the corporate debtor, claiming a default of Rs. 46,59,991/-. Mathur was previously employed by Avesthagen as Company Secretary, later promoted to Vice President-Company Secretary. He resigned in March 2013 due to non-payment of salary from January 2011. Avesthagen argued the petition was time-barred under Section 238A of the IBC, citing the Limitation Act, 1963, as the petition was filed in August 2018, more than three years after the cause of action accrued. Avesthagen also highlighted a pending winding-up petition (COP No. 12 of 2014) before the High Court of Karnataka, where Avesthagen had admitted the claim in different formats. Avesthagen further contended that

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor is maintainable under Section 9 of the IBC, …

**Ratio:** The maintainability of a petition under Section 9 of the IBC depends on whether there is

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**Reasoning:** The court considered the arguments presented by both parties regarding the existence of a

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**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a debt

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**Application:** In this case, the court found that the petition was not maintainable due to the

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## Parties

- **Judges:** Rajeswara Rao…
- **Appellants:** Naresh P.…
- **Respondents:** M/s Avesthagen…

## Timeline

- **1999-01-06 — Incorporation of…**: M/s. Avesthagen Limited…
- **2010-03-23 — Appointment of…**: Shri Naresh P. Mathur was appointed as the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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