# In the matter of Greater Arafat Tanners Private Limited CP (IB) No. 94-ALD-2019

> NCLT judgment dated 2021-12-22. Citation: TCN-2021-NCLT-00076. The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 22 Dec 2021
- **Citation:** TCN-2021-NCLT-00076
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/greater-arafat-tanners-private-limited-cp-ib-no-94-ald-2019-3bd5c1d4

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016, by RP Chemicals, an operational creditor, against Greater Arafat Tanners Private Limited, the corporate debtor, for initiation of the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed a debt of Rs. 26,32,942.67, including interest at 18% p.a., based on unpaid invoices for goods supplied. The corporate debtor contested the application, alleging a pre-existing dispute regarding the quality of the supplied chemicals.

## Facts

RP Chemicals, an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Greater Arafat Tanners Private Limited, a corporate debtor, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The debt claimed was Rs. 26,32,942.67, including interest at 18% p.a., based on unpaid invoices for goods supplied between 2016-03-02 and 2017-02-22. The operational creditor provided copies of invoices and goods delivery challans. A demand notice dated 2019-01-07 was sent to the corporate debtor via registered post on 2019-01-10 and 2019-01-16, but was returned undelivered. The notice was then served via email to the corporate debtor's registered email address and to the director's email address. The corporate

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## Issues and analysis

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

**Ratio:** The limitation period for filing an application under Section 9 of the IBC is governed by

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**Reasoning:** The court noted that the supplies were made between 2016-03-02 and 2017-02-22, with the

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**Interpretation:** The court interpreted the relevant dates of supply and the filing date to

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**Application:** The court applied the dates of the last invoice and the filing of the

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Appellants:** M/s RP Che…
- **Respondents:** Greater Arafat…

## Timeline

- **2016-03-02 — Start of Suppl…**: The operational creditor started…
- **2017-02-22 — End of Supply…**: The last invoice was raised by the operational creditor for goods supplied to 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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