# In the matter of Khaitan Electricals Limited

> NCLT judgment dated 2024-03-01. Citation: TCN-2024-NCLT-02253. The case involves an application filed by the Liquidator of Khaitan Electricals Limited, the…

- **Court:** NCLT
- **Order date:** 1 Mar 2024
- **Citation:** TCN-2024-NCLT-02253
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/khaitan-electricals-limited-296f1ba4

## Summary

### Background

The case involves an application filed by the Liquidator of Khaitan Electricals Limited, the Corporate Debtor, against HMM Shipping India Private Limited (Respondent No. 1, the Shipping Company) and Continental Warehousing Corporation (NS) Limited (Respondent No. 2, the Warehousing Company). The Liquidator sought a direction from the NCLT to release a consignment of copper wire rods imported in 2011, which was discovered in the records of the Corporate Debtor and found to be lying at the Container Freight Station (CRS) of Respondent No. 2. The Corporate Debtor was admitted into CIRP on 2018-11-28 and subsequently approved for liquidation on 2019-08-23, with the Applicant appointed as Liquidator.

## Facts

The Liquidator of Khaitan Electricals Limited filed an application seeking the release of a consignment of copper wire rods imported in 2011. The Corporate Debtor was admitted into CIRP on 2018-11-28 and subsequently approved for liquidation on 2019-08-23. The Liquidator discovered a photocopy of a Letter of Credit (LC) in the Corporate Debtor's records, indicating the import of '25 TONS OF CONTINUOUS CAST COPPER WIRE ROD IN COIL FORM'. The LC mentioned Khaitan Electrical Ltd as the Applicant and Synergic Industrial Materials and Services Pte Ltd of Singapore as the Beneficiary. The Liquidator obtained copies of the Bill of Lading and a statement of payment of Custom Duty. The consignment, containing 25,385 kgs of copper wire rod, was lying at the Container Freight

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## Issues and analysis

### Issue 1: Whether the Liquidator's claim for the release of imported goods is maintainable after a lapse of …

**Ratio:** Claims must be lodged within the prescribed limitation period. Delay in asserting a claim

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**Reasoning:** The Liquidator's claim was made after a delay of over 8 years since the import of the

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**Interpretation:** The principle of limitation dictates that legal claims must be brought within a

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**Application:** The Liquidator's claim was deemed time-barred due to the extensive delay in

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## Parties

- **Judges:** Rajeev Bh…; Sanjay…
- **Appellants:** Kamalesh Kumar…
- **Respondents:** Khaitan Electrical…; Bank of…

## Timeline

- **2011-01-01 — Import of Copper Wire…**: Consignment of copper wire rods…
- **2011-12-15 — Letter of Credit (LC)…**: Letter of Credit issued with Khaitan Electrical Ltd as applicant and Synergic Industrial…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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