# In the matter of Surat Super Yarn Park Ltd. CP (IB) No. 160-9-NCLT-AHM-2017

> NCLT judgment dated 2018-10-26. Citation: TCN-2018-NCLT-00481. M/s. Agarwal Coal Corporation Private Limited filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 26 Oct 2018
- **Citation:** TCN-2018-NCLT-00481
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/surat-super-yarn-park-ltd-cp-ib-no-160-9-nclt-ahm-2017-9e10d392

## Summary

### Background

M/s. Agarwal Coal Corporation Private Limited filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process against M/s. Surat Super Yarn Park Limited, alleging default in payment for the supply of coal. The applicant claimed that the corporate debtor approached them for the supply of coal, and a 'High Sea Sales Agreement' was entered into on 01.02.2014. The agreement stipulated payment within 45 days of delivery. The applicant supplied coal worth Rs. 4,63,35,000/- against two invoices. Despite sending payment collection memos and a demand notice dated 31.03.2017, the corporate debtor failed to make the payment. The application was filed on 18th October, 2017.

## Facts

M/s. Agarwal Coal Corporation Private Limited (Operational Creditor) filed an application seeking to initiate Corporate Insolvency Resolution Process against M/s. Surat Super Yarn Park Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for coal supplied under a 'High Sea Sales Agreement' dated 01.02.2014. The agreement stipulated payment within 45 days of delivery. Two invoices, dated 01.02.2014 and 12.03.2014, totaled Rs. 4,63,35,000/-. The Operational Creditor sent a demand notice on 31.03.2017, which was received by the Corporate Debtor on 04.04.2017. The application was filed on 18.10.2017. The Operational Creditor also submitted a Memorandum of

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is barred by limitation under the …

**Ratio:** The Limitation Act, 1963, prescribes a period of limitation for filing suits and

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**Reasoning:** The Adjudicating Authority reasoned that the invoices were dated 01.02.2014 and

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**Interpretation:** The interpretation of the Limitation Act, 1963, requires strict adherence to

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**Application:** In this case, the Adjudicating Authority applied the provisions of the

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## Parties

- **Judges:** Harihar Prakash…; Manorama…
- **Appellants:** Agarwal Coal…
- **Respondents:** Surat Super Yarn…

## Timeline

- **2014-02-01 — High Sea Sales…**: Agarwal Coal Corporation Pvt Ltd and Surat Super Yarn Park Ltd entered into a High Sea…
- **2014-02-01 — Invoice…**: First invoice issued…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(21) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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