# In the matter of GRD Trucks Private Limited

> NCLT judgment dated 2023-10-12. Citation: TCN-2023-NCLT-01268. The Adjudicating Authority admitted an Insolvency Application filed by SU1 Capital Pvt. Ltd.…

- **Court:** NCLT
- **Order date:** 12 Oct 2023
- **Citation:** TCN-2023-NCLT-01268
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/grd-trucks-private-limited-a1617522

## Summary

### Background

The Adjudicating Authority admitted an Insolvency Application filed by SU1 Capital Pvt. Ltd. against GRD Trucks Private Limited under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency Resolution Process (CIRP). Mr. Prashant Agrawal was appointed as the Interim Resolution Professional (IRP) on 2022-04-28. Ashok Leyland Limited, the applicant, filed an application because their claim was rejected by the IRP due to a delay in submission. Ashok Leyland and GRD Trucks had a Vehicle Dealer Agreement dated 2018-02-27. GRD Trucks received an order from M/s Super Mobility Services Pvt. Ltd. for 40 buses, with chassis to be manufactured by Ashok Leyland and body work by Azad Coach Pvt. Ltd. Payments were delayed, leading to a dispute.

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## Facts

SU1 Capital Private Limited initiated Corporate Insolvency Resolution Process (CIRP) against GRD Trucks Private Limited. Ashok Leyland Limited, an operational creditor, had a Vehicle Dealer Agreement with GRD Trucks. GRD Trucks received an order from M/s Super Mobility Services Pvt. Ltd. for 40 buses, with Ashok Leyland manufacturing the chassis. Payments were delayed, leading to a dispute. Ashok Leyland invoked arbitration and filed an application under Section 11 of the Arbitration and Conciliation Act, 1996, before the Madras High Court, which appointed an arbitrator on 2021-10-28. The total outstanding amount was Rs. 6,57,72,678.30. Ashok Leyland claimed they couldn't submit their claim on time due to being based in Chennai and unaware of the CIRP commencement. The

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## Issues and analysis

### Issue 1: Whether the claim filed by Ashok Leyland Limited beyond the timeline provided under regulation …

**Ratio:** Regulation 12(2) of the CIRP Regulations, 2016, prescribes a timeline for submitting

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**Reasoning:** The court reasoned that the applicant's claim was filed beyond the stipulated timeline.

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**Interpretation:** The regulation sets a deadline for submitting claims to ensure timely

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**Application:** The applicant's claim was filed after the deadline, and the applicant was

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## Parties

- **Judges:** Deep Chandr…; ATUL CHAT…
- **Appellants:** Ashok Leyland…
- **Respondents:** GRD TRUCKS…; Prashant A…

## Timeline

- **2018-02-27 — Vehicle Dealer…**: Vehicle Dealer Agreement executed between Ashok Leyland (Applicant) and GRD Trucks…
- **2020-08-17 — Payment Received by…**: Corporate Debtor received Rs. 4,49,93,628/-…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 11 — Persons not entitled to make application](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-11)

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