# In the matter of Deepak Steel and Power Limited CP (IB) No. 160-CTB-2019

> NCLT judgment dated 2021-12-03. Citation: TCN-2021-NCLT-00275. Ganesh Ores Private Limited, an operational creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 3 Dec 2021
- **Citation:** TCN-2021-NCLT-00275
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/deepak-steel-and-power-limited-cp-ib-no-160-ctb-2019-637b5159

## Summary

### Background

Ganesh Ores Private Limited, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Deepak Steel and Power Limited, the corporate debtor, for non-payment of dues related to the supply of coal. The operational creditor claimed that the corporate debtor failed to pay the outstanding balance of Rs. 63,25,464/- despite supplying 11000 MT of coal as per the purchase order dated 30.04.2013. The corporate debtor, however, contended that there was a pre-existing dispute regarding the quality and rate of the supplied coal, and that a full and final settlement had been reached on 15.07.2015. The corporate debtor also raised the plea of limitation, arguing that

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## Facts

Ganesh Ores Private Limited (Operational Creditor) supplied 11000 MT of coal to Deepak Steel and Power Limited (Corporate Debtor) between 15.05.2013 and 18.06.2013, based on a purchase order dated 30.04.2013. The Operational Creditor raised invoices totaling Rs. 2,03,15,464/-. The Corporate Debtor made payments totaling Rs. 1,39,90,000/-, leaving an outstanding balance of Rs. 63,25,464/-. The last payment of Rs. 3,00,000/- was received on 15.07.2015. The Operational Creditor issued demand notices on 24.07.2019, claiming Rs. 1,72,52,986/- (including interest). The Corporate Debtor claimed a prior dispute, stating that the amount was written off on 20.07.2018 after a full and final settlement on 15.07.2015, and that the coal supplied was of inferior quality. The

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## Issues and analysis

### Issue 1: Whether the application …

**Ratio:** Section 18 of the Limitation Act, 1963, allows for the extension of the limitation period

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**Reasoning:** The NCLT found that while the Corporate Debtor's balance sheets showed 'Trade payable

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**Interpretation:** The court interpreted Section 18 of the Limitation Act in light of the Supreme

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**Application:** The NCLT concluded that the application was not barred by limitation because

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## Parties

- **Judges:** P. Moha…; Satya Ranjan…
- **Appellants:** Ganesh Ores…
- **Respondents:** Deepak Steel and…
- **Advocates:** K. Ku…; N. R. P…; +3 more

## Timeline

- **2013-04-30 — Purchase…**: Corporate Debtor placed purchase…
- **2013-05-15 — Supply of…**: Operational Creditor supplied coal…

## 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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