# In the matter of Jaychandra Agro Industries Private Limited

> NCLT judgment dated 2023-12-06. Citation: TCN-2023-NCLT-00397. The case involves an application filed by Jaychandra Agro Industries Private Limited…

- **Court:** NCLT
- **Order date:** 6 Dec 2023
- **Citation:** TCN-2023-NCLT-00397
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jaychandra-agro-industries-private-limited-63b58bae

## Summary

### Background

The case involves an application filed by Jaychandra Agro Industries Private Limited challenging the maintainability of a company petition filed by Unique Sugars Limited, an operational creditor. The application raises preliminary objections, including claims being barred by limitation and not meeting the threshold limit under Section 4 of the IBC. The operational creditor annexed documents to the company petition to prove the existence of debt, including a computation table, summary of findings, and an order of NCLT for admission into CIRP. The respondent argues that the application was filed after receiving forensic audit reports indicating trade receivables from related parties. The CoC directed a forensic audit due to suspicious transactions by suspended directors.

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## Facts

Unique Sugars Limited (Operational Creditor) filed a company petition against Jaychandra Agro Industries Private Limited (Corporate Debtor). Jaychandra Agro Industries filed an application challenging the maintainability of the petition, arguing that the claims were time-barred under the Limitation Act and did not meet the minimum threshold limit as per Section 4 of the IBC. The claims pertained to invoices dated between 2014 and 2017. Unique Sugars argued that a forensic audit revealed trade receivables from related parties, and the CoC had directed the audit due to suspicious transactions. They relied on Section 17 of the Limitation Act, claiming the limitation period should be extended due to the discovery of fraud. The NCLT found that invoices prior to three years

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## Issues and analysis

### Issue 1: Whether the claims made by Unique …

**Ratio:** Claims are barred by limitation if they pertain to debts that arose more than three years

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**Reasoning:** The NCLT found that invoices dated prior to three years from the date of the petition

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**Interpretation:** The Limitation Act sets a time limit within which legal proceedings must be

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**Application:** The NCLT applied the principle of limitation to the invoices presented by

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## Parties

- **Judges:** Anu Jagmoha…; KISHORE VEMULAPALL…
- **Respondents:** Jaychandra Agro…; Unique Sugars…
- **Advocates:** Manoj H…; Pooja H…; +2 more

## Timeline

- **2019-02-28 — NCLT Ord…**: Order of NCLT for admission of…
- **2020-01-08 — Forensic Audi…**: Forensic Auditors Batliboi & Purohit…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 4 — Application of this Part](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-4)

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