# In the matter of Harley Foods Products Private Limited C.P. No. (IB) 858-9-NCLT-AHM-2019

> NCLT judgment dated 2020-10-15. Citation: TCN-2020-NCLT-00382. Bhavesh Products Private Limited filed a petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 15 Oct 2020
- **Citation:** TCN-2020-NCLT-00382
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/harley-foods-products-private-limited-cp-no-ib-858-9-nclt-ahm-2019-05fa4d11

## Summary

### Background

Bhavesh Products Private Limited filed a petition 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, against Harley Food Products Private Limited, an operational creditor. The petition was filed due to non-payment of dues for corrugated boxes supplied by Bhavesh Products to Harley Food Products between 18.08.2016 and 01.09.2016. The operational creditor claimed a total outstanding of Rs. 5,86,570/- along with interest at 24% per annum, amounting to Rs. 3,54,074/-.

## Facts

Bhavesh Products Private Limited (operational creditor) filed a petition against Harley Food Products Private Limited (corporate debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for non-payment of dues. Bhavesh Products claimed that Harley Food Products owed Rs. 5,86,570/- for corrugated boxes supplied between 18.08.2016 and 01.09.2016, along with interest of Rs. 3,54,074/-. The application was filed on 25.10.2019. A demand notice was issued on 25.06.2019 by Mr. Shyam Agrawal, Director of Bhavesh Products. The NCLT found that the claim was barred by limitation because of the time elapsed between the invoice dates and the application filing date. Additionally, the NCLT determined that Mr. Shyam Agrawal lacked the necessary authorization to issue the

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## Issues and analysis

### Issue 1: Whether the claim made by the …

**Ratio:** A claim is barred by limitation if the application is filed after the period prescribed

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**Reasoning:** The court found that the invoices were dated between 18.08.2016 and 01.09.2016, while the

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**Interpretation:** The law of limitation sets a deadline for initiating legal proceedings. If the

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**Application:** The court applied the principle of limitation to the facts and found that the

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## Parties

- **Judges:** Manorama…; Chockalingam…
- **Appellants:** Bhavesh Products…
- **Respondents:** Harley Food…
- **Advocates:** Aman Sh…

## Timeline

- **2016-06-21 — Purchase Ord…**: Purchase order date against which the applicant supplied corrugated boxes to the…
- **2016-08-18 — Supply Perio…**: Start date of the period during which the applicant supplied corrugated boxes to the…

## 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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