# 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-00988. 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-00988
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/salvi-chemical-industries-limited-cp-ib-no-2519-nclt-mb-2018-f59855c9

## 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 allegedly failed to pay for goods supplied by the operational creditor, leading to the application.

## 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 arose from a default of USD 3,06,000/- (equivalent to ₹2,07,37,467/-) as of 22.06.2018. The Operational Creditor supplied 'Prilled Iodine 99.8%' to the Corporate Debtor based on a purchase order placed on 26.12.2013, with an invoice dated 13.01.2014. The goods were delivered via container vessel, evidenced by a bill of lading dated 13.01.2014. Despite accepting the goods, the Corporate Debtor failed to pay the invoice amount. The Corporate Debtor acknowledged the debt in emails dated 15.05.2015 and 01.07.2015, suggesting payment proposals. A demand notice was issued on

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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 did not deny the contents of the email dated

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

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

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## Parties

- **Judges:** Mr V. P.…; Mr Rajesh…
- **Appellants:** SQM Europ…
- **Respondents:** Salvi Chemical…

## Timeline

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

## 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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