# In the matter of Quality Steel Products Limited CP NO. (IB) 174-ALD-2019

> NCLT judgment dated 2021-12-20. Citation: TCN-2021-NCLT-00128. The case originates from an application filed under Section 9 of the Insolvency & Bankruptcy…

- **Court:** NCLT
- **Order date:** 20 Dec 2021
- **Citation:** TCN-2021-NCLT-00128
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/quality-steel-products-limited-cp-no-ib-174-ald-2019-cb83824a

## Summary

### Background

The case originates from an application filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 by M/S Mahajagdamba Tubes Private Limited (Operational Creditor) against M/S Quality Steels Products Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed a debt of Rs. 95,68,188.32 along with interest of Rs. 57,58,310.60. The corporate debtor raised objections regarding the application being barred by limitation and the directors of the operational creditor not being legally capable to sign and file the application due to deactivated DINs.

## Facts

M/S Mahajagdamba Tubes Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, against M/S Quality Steels Products Limited, the Corporate Debtor. The operational creditor claimed a debt of Rs. 95,68,188.32 along with interest of Rs. 57,58,310.60. The operational creditor submitted an email dated 02.04.2016, ledger accounts, invoices, and a demand notice dated 17.04.2019, which was delivered on 20.04.2019, as evidence. The corporate debtor argued that the application was barred by limitation because the debt was last due on 27.05.2016 and the notice of the petition was served on 25.08.2019. The corporate debtor also claimed that the directors of the company were disqualified by the ROC. The

…

## Issues and analysis

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

**Ratio:** Section 19 of the Limitation Act, 1963 states that the limitation period is reckoned from

…

**Reasoning:** The Adjudicating Authority found that the last payment was made by the corporate debtor

…

**Interpretation:** The service of notice of petition filed under Sec 9 IBC is not of relevant

…

**Application:** Since the last payment was made on 27.05.2016 and the application was filed on

…

## Parties

- **Judges:** SH. RAJASEKHAR…; SH. VIRENDRA…
- **Appellants:** M/S Mahajagdamba…
- **Respondents:** M/S Quality…

## Timeline

- **2016-04-02 — Email from Corporate…**: Email sent by the corporate debtor showing the…
- **2016-05-27 — Last Payme…**: The Corporate Debtor claimed that…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/quality-steel-products-limited-cp-no-ib-174-ald-2019-cb83824a