# In the matter of Salvi Chemical Industries Limited C.P. (IB) No. 2519-NCLT-MB-2018

> NCLT judgment dated 2019-10-15. Citation: TCN-2019-NCLT-00981. SQM Europe N. V., an operational creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 15 Oct 2019
- **Citation:** TCN-2019-NCLT-00981
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/salvi-chemical-industries-limited-cp-ib-no-2519-nclt-mb-2018-5ca14c69

## Summary

### Background

SQM Europe N. V., an operational creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 (I&B Code) against Salvi Chemical Industries Limited, the corporate debtor, for initiating Corporate Insolvency Resolution Process (CIRP) due to a default of USD 3,06,000/-. The corporate debtor contended that the claim was time-barred, disputing the validity of an email dated 01.07.2015 as acknowledgment of debt because it lacked a digital signature.

## Facts

SQM Europe N. V. (Operational Creditor) filed an application against Salvi Chemical Industries Limited (Corporate Debtor) under Section 9 of the I&B Code, 2016, seeking to initiate CIRP. The claim was based on a default of USD 3,06,000/- (equivalent to ₹2,07,37,467/-) as of 22.06.2018, arising from the supply of 'Prilled Iodine 99.8%' on credit, vide invoice dated 13.01.2014. The Corporate Debtor received the goods but failed to pay the amount due. The Corporate Debtor acknowledged its liability to repay the outstanding amount in emails dated 15.05.2015 and 01.07.2015. A demand notice was issued on 16.06.2018. The Corporate Debtor contended that the claim was time-barred, arguing that the email dated 01.07.2015 could not be treated as an acknowledgment of debt

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## Issues and analysis

### Issue 1: Whether the application filed by the operational creditor is within the period of limitation as …

**Ratio:** Section 18 of the Limitation Act, 1963 states that a fresh period of limitation begins

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**Reasoning:** The court observed that the Corporate Debtor disputed the validity of the email dated

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**Interpretation:** The court interpreted Section 18 of the Limitation Act, 1963, to mean that a

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**Application:** The court applied the ratio to the facts, holding that the email dated

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## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** SQM Europ…
- **Respondents:** Salvi Chemical…
- **Advocates:** Shivangi A…; S. J. M…; +1 more

## Timeline

- **2013-12-26 — Purchase…**: Corporate Debtor placed a…
- **2014-01-13 — Invoice…**: Invoice issued for…

## 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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