# In the matter of Shriram Cement Limited I.A. 219-NCLT-AHM-2019 in C.P. (I.B) No. 195-9-NCLT-AHM-2018

> NCLT judgment dated 2019-09-20. Citation: TCN-2019-NCLT-01335. The case involves an application (I.A. No. 219 of 2019) filed in connection with a Corporate…

- **Court:** NCLT
- **Order date:** 20 Sept 2019
- **Citation:** TCN-2019-NCLT-01335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/shriram-cement-limited-ia-219-nclt-ahm-2019-in-cp-ib-no-195-9-nclt-ahm-2018-794f1384

## Summary

### Background

The case involves an application (I.A. No. 219 of 2019) filed in connection with a Corporate Insolvency Resolution Process (CIRP) initiated under the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority (National Company Law Tribunal, Ahmedabad Bench) had initially rejected the I.B. Petition filed by the Operational Creditor (Agarwal Coal Corporation Pvt. Ltd.) on the ground of limitation. This decision was challenged before the NCLAT, which allowed the appeal and set aside the order of the Adjudicating Authority. The NCLAT remitted the matter back to the Adjudicating Authority for fresh consideration. The Corporate Debtor (Shriram Cement Ltd.) initially did not appear, but later filed an affidavit admitting the claim of the Operational Creditor.

## Facts

Agarwal Coal Corporation Pvt. Ltd. (Operational Creditor) filed an I.B. Petition against Shriram Cement Ltd. (Corporate Debtor) seeking initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC). The Adjudicating Authority initially rejected the petition on the ground of limitation. The Operational Creditor appealed to the NCLAT, which set aside the Adjudicating Authority's order and remitted the matter for fresh consideration. The NCLAT noted a debt settlement agreement dated 01st March 2017, which was noticed by the Hon'ble High Court of Gujarat. The Corporate Debtor initially did not appear, but later filed an affidavit admitting the claim of the Operational Creditor. The Operational Creditor supplied

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## Issues and analysis

### Issue 1: Whether the I.B. Petition filed by the …

**Ratio:** The principle is that a claim should not be barred by limitation if there is evidence of

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**Reasoning:** The NCLAT, in its order, observed that there was a debt settlement agreement between the

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**Interpretation:** The interpretation is that the existence of a debt settlement agreement, even

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**Application:** In this case, the NCLAT's observation about the debt settlement agreement and

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Agrawal Coal…
- **Respondents:** Shriram Cement…

## Timeline

- **2017-03-01 — Debt Settlement…**: A debt settlement agreement was entered between the Operational Creditor and the…
- **2017-07-20 — High Court…**: The Hon'ble High Court of Gujarat…

## 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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