# In the matter of ILA Metals Pvt. Ltd. CP (IB) No.125-NCLT-AHM-2021

> NCLT judgment dated 2023-02-08. Citation: TCN-2023-NCLT-04725. The case pertains to an application filed on 2021-07-30 by Somani Multibiz Private Limited, the…

- **Court:** NCLT
- **Order date:** 8 Feb 2023
- **Citation:** TCN-2023-NCLT-04725
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/ila-metals-pvt-ltd-cp-ib-no125-nclt-ahm-2021-1c38a3a9

## Summary

### Background

The case pertains to an application filed on 2021-07-30 by Somani Multibiz Private Limited, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating Corporate Insolvency Resolution Process (CIRP) against Ila Metals Private Limited, the Corporate Debtor. The Operational Creditor claimed a debt in default of Rs. 1,79,24,908.30, which includes an outstanding amount against invoices of Rs. 1,70,03,744.10 and interest at 12% per annum amounting to Rs. 9,21,164.20. The Corporate Debtor and Operational Creditor had a business relationship involving the sale and purchase of gold bars, formalized through a term sheet signed on 2020-12-01. The Operational Creditor supplied gold bars to the Corporate Debtor and raised invoices for

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## Facts

Somani Multibiz Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Ila Metals Private Limited (Corporate Debtor). The claim was for Rs. 1,79,24,908.30, including Rs. 1,70,03,744.10 against invoices and Rs. 9,21,164.20 as interest. The Operational Creditor and Corporate Debtor had a business relationship involving the sale and purchase of gold bars, based on a term sheet signed on 2020-12-01. The Operational Creditor supplied gold bars to the Corporate Debtor and raised five invoices between 2020-12-07 and 2020-12-15. A demand notice was issued to the Corporate Debtor on 2021-05-31. The Corporate Debtor responded on 2021-07-05, citing

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational …

**Ratio:** The application must be filed within the

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**Reasoning:** The Adjudicating Authority observed that the application was filed on 2021-07-30, and as

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**Interpretation:** The limitation period is a crucial aspect of legal proceedings, ensuring that

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**Application:** The application was filed on 2021-07-30, and the Adjudicating Authority

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Somani Multibiz…
- **Respondents:** Ila Metals Pvt.…

## Timeline

- **2020-12-01 — Term Sheet…**: The Corporate Debtor and Operational Creditor entered into a business relationship based…
- **2020-12-07 — Invoice…**: Invoice No. 2578 for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8(1) — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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