# In the matter of Fertis India Private Limited CP(IB) No. 155-9-HDB-2020

> NCLT judgment dated 2021-12-30. Citation: TCN-2021-NCLT-00008. The Operational Creditor, Megha Granules Pvt Ltd, filed a petition under Section 9 of the…

- **Court:** NCLT
- **Order date:** 30 Dec 2021
- **Citation:** TCN-2021-NCLT-00008
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fertis-india-private-limited-cpib-no-155-9-hdb-2020-2a7a4522

## Summary

### Background

The Operational Creditor, Megha Granules Pvt Ltd, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Fertis India Pvt Ltd, the Corporate Debtor, for defaulting on a payment of Rs. 37,21,628/-, which included a principal amount of Rs. 17,59,116/- and interest of Rs. 19,62,512/- for the period from 31.03.2015 to 31.10.2019. The Operational Creditor claimed to have supplied materials as per purchase orders raised by the Corporate Debtor, but the Corporate Debtor failed to make full payment. The Corporate Debtor contended that there was a pre-existing dispute regarding the quality of the supplied materials and that the claims were barred by limitation.

## Facts

Megha Granules Pvt Ltd (Operational Creditor) filed a petition against Fertis India Pvt Ltd (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming a default of Rs. 37,21,628/-. This amount included a principal of Rs. 17,59,116/- and interest of Rs. 19,62,512/- for the period between 31.03.2015 and 31.10.2019. The Operational Creditor supplied cylinders for making bags to the Corporate Debtor based on purchase orders. The Corporate Debtor made partial payments of Rs. 22,99,064/- but failed to pay the balance. The Operational Creditor approached the Corporate Debtor to settle the issue, and in a meeting on 10.12.2018, the Corporate Debtor agreed to release payments within 6-9 months. The Operational Creditor also agreed to take back some

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## Issues and analysis

### Issue 1: Whether the claim of the Operational …

**Ratio:** Article 58 and 113 of the Limitation Act, 1963, determine the period of limitation.

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**Reasoning:** The NCLT considered the email correspondence dated 02.04.2019, which indicated that the

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**Interpretation:** The court interpreted the Corporate Debtor's request for time to process the

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**Application:** Since the application was filed within 3 years from the date of the said

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## Parties

- **Judges:** Venkata Ramakrishn…; SH. VEERA BRAHMA…
- **Appellants:** Megha Granules…
- **Respondents:** Fertis India Pvt…

## Timeline

- **2015-03-31 — Start of Interest…**: Interest calculation…
- **2015-01-31 — Invoice…**: Invoice No. 538 dated…

## 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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