# In the matter of Marg Limited IBA-116-2020

> NCLT judgment dated 2021-09-28. Citation: TCN-2021-NCLT-00968. Srishaila Constructions Private Limited filed an application under Section 9 of the Insolvency…

- **Court:** NCLT
- **Order date:** 28 Sept 2021
- **Citation:** TCN-2021-NCLT-00968
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/marg-limited-iba-116-2020-7496bb89

## Summary

### Background

Srishaila Constructions Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Marg Limited, seeking to initiate the Corporate Insolvency Resolution Process (CIRP). The application was based on an alleged operational debt of Rs. 6,68,12,000/-. The Corporate Debtor argued that the application was barred by limitation, as the debt was time-barred. The Operational Creditor claimed that a letter dated 28.12.2015 served as an acknowledgment of the debt.

## Facts

Srishaila Constructions Private Limited (Operational Creditor) claimed that M/s. Marg Limited (Corporate Debtor) owed them Rs. 6,68,12,000/- for construction and piling work at Karaikal Port. The Operational Creditor submitted work orders, invoices, and a reconciliation statement as evidence of the debt. The Corporate Debtor allegedly acknowledged the debt in a meeting in June 2015 and offered machinery worth Rs. 30,00,000/- to offset the debt. The Operational Creditor claimed that a letter dated 28.12.2015 confirmed the outstanding balance after adjusting for the machinery. The Corporate Debtor denied liability, claiming the debt was time-barred and the letter was fabricated. The Operational Creditor issued a demand notice on 30.11.2019, which the Corporate Debtor

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 is barred …

**Ratio:** The period of limitation for an application seeking initiation of CIRP under Section 9 of

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**Reasoning:** The Tribunal considered the arguments presented by both parties regarding the date of

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**Interpretation:** The interpretation of Section 238-A of the IBC, read with Article 137 of the

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**Application:** The Tribunal applied the principle of limitation to the facts of the case,

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## Parties

- **Judges:** R. Sucha…; Anil Ku…
- **Appellants:** Srishaila…
- **Respondents:** M/s. Marg L…

## Timeline

- **2010-07-14 — Work Ord…**: Construction of Berth…
- **2011-08-19 — Work Ord…**: Construction of OSV Berth…

## 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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