# In the matter of BHEL Electrical Machines Limited CP (IB)-32-KOB-2021

> NCLT judgment dated 2022-03-07. Citation: TCN-2022-NCLT-03872. M/s. BMSS Steel Industries Private Limited, the Operational Creditor, filed an application…

- **Court:** NCLT
- **Order date:** 7 Mar 2022
- **Citation:** TCN-2022-NCLT-03872
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhel-electrical-machines-limited-cp-ib-32-kob-2021-70f5561b

## Summary

### Background

M/s. BMSS Steel Industries Private Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s. BHEL Electrical Machines Limited, the Corporate Debtor, for a total outstanding amount of Rs. 5,22,852.25/- due as of 30.11.2019. The Operational Creditor claimed that the default occurred on 14.07.2017 and 31.08.2017 concerning Invoice Nos. 00419 and 0108, respectively. The Corporate Debtor did not appear, and the matter proceeded ex parte.

## Facts

M/s. BMSS Steel Industries Private Limited, an Operational Creditor, filed an application to initiate Corporate Insolvency Resolution Process (CIRP) against M/s BHEL Electrical Machines Limited, a Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor claimed a default of Rs. 5,22,852.25/- as of 30.11.2019, arising from invoices due on 14.07.2017 and 31.08.2017. The Operational Creditor supplied 'Alloy Steel Forged Bar' to the Corporate Debtor, with payment terms of 30 days. Purchase Order No. 6462 dated 19.04.2017 stipulated these payment terms. Invoices No. 00419 and 0108, dated 14.06.2017 and 01.08.2017 respectively, amounted to Rs. 1,63,028/- and Rs. 2,70,810/-. Communications occurred between the parties regarding

…

## Issues and analysis

### Issue 1: Whether the application filed on 28.06.2021 claiming the default amount of Rs. 5,22,852.25/- as on …

**Ratio:** The ratio is based on the Limitation Act, 1963, specifically Article 137, which provides

…

**Reasoning:** The court reasoned that the application was filed beyond the three-year limitation period

…

**Interpretation:** The interpretation involves understanding the application of the Limitation

…

**Application:** The ratio and reasoning were applied to the facts of the case, where the

…

## Parties

- **Judges:** Ashok Kumar…; Anil Ku…
- **Appellants:** M/s. BMSS Steel…
- **Respondents:** M/s BHEL Electrica…
- **Advocates:** V. Halle…; A.K. Muhammed…

## Timeline

- **2017-04-19 — Purchase…**: Purchase Order No. 6462 was placed,…
- **2017-06-14 — Invoice…**: Invoice No. 00419 was…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhel-electrical-machines-limited-cp-ib-32-kob-2021-70f5561b