# In the matter of Red Fort Capital Advisors Pvt. Ltd. IB-2116-ND-2019

> NCLT judgment dated 2019-09-30. Citation: TCN-2019-NCLT-01185. M.R.A. Associates India Private Limited, an operational creditor, filed a petition under…

- **Court:** NCLT
- **Order date:** 30 Sept 2019
- **Citation:** TCN-2019-NCLT-01185
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/red-fort-capital-advisors-pvt-ltd-ib-2116-nd-2019-718a8acc

## Summary

### Background

M.R.A. Associates India Private Limited, an operational creditor, filed a petition under Section 9 of the Insolvency & Bankruptcy Code, 2016, against Red Fort Capital Advisors Private Limited, the corporate debtor, for failing to liquidate a claim of Rs. 3,37,08,000 plus interest. The claim arose from a contract agreement dated 08.09.2014 for claim settlement with L&T for the 'Delhi one' Project at Noida, India. The operational creditor issued a demand notice dated 09.04.2019. The petition was filed to initiate the Corporate Insolvency Resolution Process.

## Facts

M.R.A. Associates India Private Limited (Operational Creditor) entered into a contract agreement with Red Fort Capital Advisors Private Limited (Corporate Debtor) on 08.09.2014 for claim settlement with L&T for the 'Delhi one' Project at Noida, India, for a total amount of Rs. 3,00,00,000 plus taxes. The Operational Creditor executed the work and raised an invoice dated 01.11.2014. The Corporate Debtor failed to liquidate the claim of Rs. 3,37,08,000 plus interest. The Operational Creditor sent notices under Section 434 of the Companies Act, 1956, on 02.03.2016 and 30.04.2016, requesting payment. The Corporate Debtor neither paid nor denied its liability. The Operational Creditor issued a demand notice dated 09.04.2019. The Operational Creditor filed a petition

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational creditor for initiating Corporate Insolvency …

**Ratio:** The limitation period for filing a petition under Section 9 of the IBC is three years

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**Reasoning:** The court reasoned that the invoice date, 01.11.2014, was the date of default. The

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**Interpretation:** The court interpreted the limitation period strictly, holding that the petition

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**Application:** Since the petition was filed more than three years after the invoice date

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## Parties

- **Judges:** Ina Mal…; SUMITAPURKA…
- **Appellants:** MRA Associates…
- **Respondents:** Red Fort Capital…

## Timeline

- **2014-08-09 — Contract Ag…**: M.R.A. Associates India Private Limited entered into a contract agreement with Red Fort…
- **2014-11-01 — Invoice R…**: An invoice was raised by M.R.A.…

## 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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