# In the matter of Avinash EM Projects Pvt. Ltd. CP No. (IB)-16-(ND)-2018

> NCLT judgment dated 2018-10-22. Citation: TCN-2018-NCLT-00525. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Oct 2018
- **Citation:** TCN-2018-NCLT-00525
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/avinash-em-projects-pvt-ltd-cp-no-ib-16-nd-2018-45f452c8

## Summary

### Background

The case involves an application 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, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Respondent, Avinash EM Projects Private Limited. The Applicant, Vichitra Construction Private Limited, claims to be an operational creditor. The applicant raised its first invoice on 11.07.2012 and the last invoice on 03.09.2013. The last payment was received on 07.06.2013. A demand notice under Section 8 of the Code was issued on 10.11.2017.

## Facts

Vichitra Construction Private Limited (Applicant) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of CIRP against Avinash EM Projects Private Limited (Respondent). Vichitra Construction claims to be an operational creditor. The applicant provided services to the corporate debtor from May 2012 to September 2013. The first invoice was raised on 11.07.2012, and the last invoice was issued on 03.09.2013. The last payment was received on 07.06.2013. The applicant issued a demand notice under Section 8 of the Code on 10.11.2017, claiming Rs. 26,75,733/- as due since 01.01.2014. The respondent raised objections, stating that the claim is barred by limitation as the petition was filed more than four years after the last

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is barred by …

**Ratio:** The Limitation Act applies to cases under the Insolvency and Bankruptcy Code, and claims

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**Reasoning:** The court observed that the demand notice was issued four years after the receipt of the

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**Interpretation:** The court interpreted the provisions of the Insolvency and Bankruptcy Code,

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**Application:** The court applied the principle of limitation to the facts of the case, noting

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** VICHITRA CONSTRUCT…
- **Respondents:** AVINASH EM…

## Timeline

- **2012-05-31 — Contract E…**: The contract was entered…
- **2012-05-18 — Quotation R…**: Quotation was received by the Corporate…

## 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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