# 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-04357. The case involves a petition filed by Sichuan Gent Imp & Exp Co. Limited (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 27 Jan 2022
- **Citation:** TCN-2022-NCLT-04357
- **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-fff32f38

## Summary

### Background

The case involves a petition filed by Sichuan Gent Imp & Exp Co. Limited (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against K. P. Garments Private Limited (Corporate Debtor). The Operational Creditor sought to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for failing to pay a sum of Rs. 64,71,902/-. The Corporate Debtor argued that the claim was time-barred and disputed the invoices.

## Facts

Sichuan Gent Imp & Exp Co. Limited (Operational Creditor) filed a petition against K. P. Garments Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP. The Operational Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs. 64,71,902/- for raw silk yarn supplied. The Corporate Debtor made ad hoc payments until July 10, 2015, but a balance of Rs. 34,84,033/- remained outstanding, along with interest at 18% p.a. from June 16, 2013, to March 20, 2018. The Operational Creditor issued reminder letters and a demand notice, to which the Corporate Debtor replied, disputing the claim. The Corporate Debtor argued that the claim was time-barred, the invoices were false and

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## Issues and analysis

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

**Ratio:** The limitation period for filing a petition under the Insolvency and Bankruptcy Code,

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**Reasoning:** The court considered the date of the invoices (January to June 2013), the date of the

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**Interpretation:** The Insolvency and Bankruptcy Code, 2016, incorporates the principles of

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**Application:** The court applied the principle of limitation to the facts of the case, noting

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## Parties

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

## Timeline

- **2005-07-28 — Corporate Debtor…**: K. P. Garments Private…
- **2013-01-08 — Invoice Perio…**: Start date of invoices raised…

## 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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