# In the matter of K.P. Garments Private Limited CP (IB) No. 807-KB-2018

> NCLT judgment dated 2022-01-27. Citation: TCN-2022-NCLT-04358. This is a company petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by…

- **Court:** NCLT
- **Order date:** 27 Jan 2022
- **Citation:** TCN-2022-NCLT-04358
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/kp-garments-private-limited-cp-ib-no-807-kb-2018-30afc6bb

## Summary

### Background

This is a company petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Sichuan Gent Imp & Exp Co. Limited (Operational Creditor) against K. P. Garments Private Limited (Corporate Debtor) to initiate Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claims that the Corporate Debtor defaulted in payment of Rs. 64,71,902.00. The petition was filed on 08 June, 2018.

## Facts

Sichuan Gent Imp & Exp Co. Limited (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against K. P. Garments Private Limited (Corporate Debtor), seeking to initiate CIRP. The Operational Creditor supplied raw silk yarn to the Corporate Debtor and raised invoices. The Corporate Debtor made payments on an ad hoc basis until 10 July, 2015. The Corporate Debtor defaulted on payments of Rs. 34,84,033.00, along with 18% interest p.a. from 16 June, 2013 to 20 March, 2018. The Corporate Debtor acknowledged the debt through its Managing Director. The Operational Creditor issued reminder letters and a demand notice under Section 8 of the Code. The Corporate Debtor replied to the demand notice, claiming the petition was

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## Issues and analysis

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

**Ratio:** A petition under the Insolvency and Bankruptcy Code must be filed within the limitation

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**Reasoning:** The Adjudicating Authority considered the date of the last payment made by the Corporate

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**Interpretation:** The limitation period for filing a petition under the Insolvency and Bankruptcy

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**Application:** In this case, the Adjudicating Authority found that the petition was filed

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## Parties

- **Judges:** Rajasekha…; Balraj…
- **Appellants:** Sichuan Gent Imp…
- **Respondents:** K. P. Garments…

## Timeline

- **2005-07-28 — Incorporation of…**: K. P. Garments Private…
- **2013-01-08 — Start of Invoi…**: Invoices raised between 08…

## 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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