# In the matter of Arch Pharmalabs Limited CP (IB) 3460-MB-2019

> NCLT judgment dated 2023-02-08. Citation: TCN-2023-NCLT-04720. The case involves a petition filed by Mr. Kalpesh Jaysukh Shah, an operational creditor, under…

- **Court:** NCLT
- **Order date:** 8 Feb 2023
- **Citation:** TCN-2023-NCLT-04720
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/arch-pharmalabs-limited-cp-ib-3460-mb-2019-4a18b904

## Summary

### Background

The case involves a petition filed by Mr. Kalpesh Jaysukh Shah, an operational creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), to initiate the Corporate Insolvency Resolution Process (CIRP) against Arch Pharmalabs Limited, the corporate debtor. The petition was filed due to the corporate debtor's alleged failure to pay outstanding salary dues amounting to Rs. 25,89,443/- for the period of 01.08.2013 to 05.04.2014. The corporate debtor contested the petition, arguing that the application was defective and not maintainable, primarily on the grounds of limitation and the lack of acknowledgment of debt.

## Facts

Mr. Kalpesh Jaysukh Shah, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Arch Pharmalabs Limited, the corporate debtor. The claim was based on unpaid salary dues amounting to Rs. 25,89,443/- for the period of 01.08.2013 to 05.04.2014. The operational creditor was employed as Deputy General Manager-SAP with the corporate debtor from 19.05.2010 to 05.04.2014. The corporate debtor argued that the petition was defective and not maintainable due to limitation issues. The date of default was stated as 06.04.2014, but the corporate debtor claimed the actual date of default was earlier, making the claim time-barred. The corporate debtor also argued that

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## Issues and analysis

### Issue 1: Whether the petition filed by the operational …

**Ratio:** The petition under Section 9 of the IBC is maintainable only if it satisfies the

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**Reasoning:** The court considered the arguments presented by both parties regarding the

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**Interpretation:** The interpretation of Section 9 of the IBC requires the operational creditor to

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**Application:** In this case, the court found that the operational creditor's claim was

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## Parties

- **Judges:** P.N. Deshmukh…; Shyam Babu…
- **Appellants:** KALPESH JAYSUKH…
- **Respondents:** Arch Pharmalabs…
- **Advocates:** Sumit K…; Nausher…

## Timeline

- **1993-04-02 — Incorporation of…**: Arch Pharmalabs Limited was…
- **2010-05-19 — Operational Creditor…**: Mr. Kalpesh Jaysukh Shah joined Arch…

## 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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