# In the matter of KLT Automotive and Tubular Product Limited TCP 169-MB-2017

> NCLT judgment dated 2023-01-19. Citation: TCN-2023-NCLT-04986. Neo Seamless Tubes Limited filed a Company Petition under Section 9 of the Insolvency and…

- **Court:** NCLT
- **Order date:** 19 Jan 2023
- **Citation:** TCN-2023-NCLT-04986
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/klt-automotive-and-tubular-product-limited-tcp-169-mb-2017-0fc072fa

## Summary

### Background

Neo Seamless Tubes Limited filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against KLT Automotive and Tubular Product Limited. The Corporate Debtor was incorporated on 26.09.1994 under the Companies Act, 1956. The Operational Creditor claimed a total debt of Rs.21,88,312/- plus interest. The Transfer Company Petition was originally filed on 23.03.2016 before the Hon'ble Bombay High Court and later transferred to the NCLT Mumbai Bench.

## Facts

Neo Seamless Tubes Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against KLT Automotive and Tubular Product Limited (Corporate Debtor) seeking to initiate CIRP. The Corporate Debtor was incorporated on 26.09.1994. The Operational Creditor claimed a debt of Rs.21,88,312/- plus interest, based on invoices for goods supplied. The Corporate Debtor placed two purchase orders on 09.04.2010. Deliveries were made, and invoices were raised between 16.06.2010 and 12.10.2010, totaling Rs.39,88,312/-. The Corporate Debtor made payments totaling Rs.18,00,000/-. A notice was issued on 31.10.2012 to the Corporate Debtor for the outstanding balance. The Corporate Debtor issued C-Forms for the period 2010-2011 under a

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## Issues and analysis

### Issue 1: Whether the petition is barred by …

**Ratio:** Article 137 of the Limitation Act, 1963 prescribes a limitation period of three years for

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**Reasoning:** The NCLT found that the petition was filed beyond the three-year limitation period. Even

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**Interpretation:** The limitation period begins to run from the date the right to apply accrues.

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**Application:** The invoices were raised between 16.06.2010 and 12.10.2010. The petition was

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## Parties

- **Judges:** P.N. Des…; Shyam Babu…
- **Appellants:** Neo Seamless…
- **Respondents:** KLT Automotive…

## Timeline

- **1994-09-26 — Incorporation of…**: KLT Automotive and Tubular Product Limited was…
- **2010-04-09 — Purchase…**: Corporate Debtor placed 2 purchase orders vide PO No. 4500047897 and PO No. 4500047892…

## 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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