# In the matter of Hindustan Paper Corporation Ltd. IB-418(ND)-2018

> NCLT judgment dated 2018-06-13. Citation: TCN-2018-NCLT-01282. The Operational Creditor, M/s. Alloys & Metals (India), initiated proceedings under Section 9…

- **Court:** NCLT
- **Order date:** 13 Jun 2018
- **Citation:** TCN-2018-NCLT-01282
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/hindustan-paper-corporation-ltd-ib-418nd-2018-08ff26c3

## Summary

### Background

The Operational Creditor, M/s. Alloys & Metals (India), initiated proceedings under Section 9 of the Insolvency and Bankruptcy Code, 2016 against the Corporate Debtor, Hindustan Paper Corporation Ltd., due to its inability to liquidate outstanding dues. The Corporate Debtor, a public sector undertaking, had placed two purchase orders for the supply of Grey Board. Goods were supplied, and invoices were raised accordingly. The Operational Creditor also deposited a security for due performance. Despite reminders, the Corporate Debtor failed to liquidate its liability, acknowledging it in letters dated 15.06.2017 & 23.06.2017. A demand notice was issued on 13.10.2017 under Section 8 of the Code.

## Facts

M/s. Alloys & Metals (India), the Operational Creditor, filed a petition against Hindustan Paper Corporation Ltd., the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Corporate Debtor, a public sector undertaking, placed two purchase orders for Grey Board. The Operational Creditor supplied goods and raised invoices. The total amount due was Rs. 98,28,001/-, including a security refund of Rs. 8,56,500/-. The Operational Creditor deposited Rs. 5 lakhs and Rs. 3,56,500/- as security for due performance. The Corporate Debtor acknowledged the outstanding liability in letters dated 15.06.2017 & 23.06.2017. A demand notice was issued on 13.10.2017. The Corporate Debtor claimed the petition was barred by limitation and filed by an

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## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The admitted acknowledgment of debt dated 15th June, 2017, is considered to determine the

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**Reasoning:** The Adjudicating Authority determined that even if some bills prior to 16th June, 2014,

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**Interpretation:** The limitation period is calculated from the date of acknowledgment of debt.

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**Application:** Since the acknowledged debt was over Rs. 1 lakh and the invoices were raised

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** M/s Alloys &…
- **Respondents:** Hindustan Paper…

## Timeline

- **2014-06-28 — Purchase…**: Corporate Debtor placed purchase…
- **2014-09-12 — Purchase…**: Corporate Debtor placed purchase…

## 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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