# In the matter of Bhopal Tractors Private Limited TP-172-MP-2019 {CP(IB) 405-AHM-2019}

> NCLT judgment dated 2023-02-17. Citation: TCN-2023-NCLT-04561. The case involves an application filed by Oswal Pumps Limited (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 17 Feb 2023
- **Citation:** TCN-2023-NCLT-04561
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/bhopal-tractors-private-limited-tp-172-mp-2019-cpib-405-ahm-2019-4b37d6db

## Summary

### Background

The case involves an application filed by Oswal Pumps Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bhopal Tractors Private Limited (Corporate Debtor). The operational creditor claimed a default amount of Rs 39,89,321/-. The corporate debtor argued that the goods were not sold but transferred under a principal-agent relationship and that the goods were defective. The corporate debtor also claimed to have paid a security deposit of Rs 25 lakh.

## Facts

Oswal Pumps Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Bhopal Tractors Private Limited (Corporate Debtor). The application was filed on 13.06.2019. The operational creditor claimed a default amount of Rs 39,89,321/-, comprising a principal amount of Rs 22,56,259/- and an interest amount of Rs 17,33,062/-. The operational creditor and corporate debtor had a business relationship involving the purchase and supply of submersible pumps, monoblock pumps, and electric motors. The operational creditor supplied goods to the corporate debtor in the financial year 2014-15. The operational creditor sent an email on 22.06.2018, stating that

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** The limitation period for filing an application under Section 9 of the IBC starts from

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**Reasoning:** The court observed that the date of default was 08.03.2015, and the demand notice was

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**Interpretation:** The court interpreted the provisions of the Limitation Act in conjunction with

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**Application:** The court applied the principle of limitation to the facts of the case, noting

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Oswal Pum…
- **Respondents:** Bhopal Tractors…; Bhopal Tractors…
- **Advocates:** Madhav L…; Uday J…

## Timeline

- **2014-08-02 — Agreement…**: An agreement was…
- **2014-08-23 — Goods Supplied and…**: Goods were supplied and invoices were raised by the operational creditor between…

## 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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