# In the matter of Jainex Metaliks  Pvt. Ltd. C.P. (IB) No. 67-KB-2018

> NCLT judgment dated 2019-02-11. Citation: TCN-2019-NCLT-04904. AIC Casting Pvt. Ltd., the Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 11 Feb 2019
- **Citation:** TCN-2019-NCLT-04904
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/jainex-metaliks-pvt-ltd-cp-ib-no-67-kb-2018-e282a766

## Summary

### Background

AIC Casting Pvt. Ltd., the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Jainex Metaliks Ltd., the Corporate Debtor, for non-payment of an operational debt amounting to Rs. 15,34,622/-. The Operational Creditor claimed that the Corporate Debtor failed to make payments despite repeated demands. The Corporate Debtor contested the application, arguing that the debt was time-barred and that there was a pre-existing dispute regarding the quality of goods supplied.

## Facts

AIC Casting Pvt. Ltd. (Operational Creditor) claimed that Jainex Metaliks Ltd. (Corporate Debtor) owed them Rs. 15,34,622/- as an unpaid operational debt. The debt arose from the supply of goods ('C.I. Ingot Mould') based on a verbal order. The Operational Creditor raised a Tax Invoice and Excise Invoice Cum Challan dated 2013-08-27. The Corporate Debtor allegedly did not make any payments. The Operational Creditor sent a demand notice on 2017-10-23. The Corporate Debtor replied on 2017-10-31, raising issues about the quality of goods and the limitation period. The Corporate Debtor argued that the application was an attempt to bring a time-barred debt into legal operation and that they had been regular in dealing with the Operational Creditor since 2012, making regular

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is barred by limitation under the …

**Ratio:** The law of limitation applies to applications filed under Section 9 of the Insolvency and

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**Reasoning:** The court reasoned that the demand notice was issued more than three years after the

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**Interpretation:** The interpretation of Section 9 of the I&B Code, read with the Limitation

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**Application:** In this case, the invoice was dated 2013-08-27, and the demand notice was

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## Parties

- **Judges:** Jinan…
- **Appellants:** AIC Casting Pvt.…
- **Respondents:** Jainex Metaliks…
- **Advocates:** Abhishek…; D. Basu…; +1 more

## Timeline

- **2013-08-27 — Invoice…**: Operational Creditor raised Tax Invoice and…
- **2017-10-23 — Demand N…**: Operational Creditor sent a demand…

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