# In the matter of Madhya Bharat Papers Limited

> NCLT judgment dated 2024-02-14. Citation: TCN-2024-NCLT-02606. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 14 Feb 2024
- **Citation:** TCN-2024-NCLT-02606
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/madhya-bharat-papers-limited-98050446

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Grasim Industries Limited (Operational Creditor) to initiate Corporate Insolvency Resolution Process (CIRP) against Madhya Bharat Papers Limited (Corporate Debtor) for non-payment of dues related to the supply of materials. The petitioner claims that the corporate debtor failed to pay for the materials supplied, leading to outstanding invoices. The respondent disputes the claim, arguing that the invoices are unauthenticated, time-barred, and that the interest claimed cannot be included to meet the threshold limit of Rs. 1 crore.

## Facts

Grasim Industries Limited, the operational creditor, supplied various materials to Madhya Bharat Papers Limited, the corporate debtor, based on purchase orders. Invoices were raised for these supplies, with payment due dates specified. The petitioner claims the respondent failed to make full payments, leading to outstanding dues. The respondent made some payments, but disputes the outstanding amount, claiming the invoices are unauthenticated and time-barred. The petitioner claims a running account was maintained, while the respondent denies this. The petitioner sent a legal notice demanding payment, and the respondent allegedly confirmed the outstanding amount in a letter. The petitioner also sent a statutory notice for initiating CIRP. The respondent argues that the

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## Issues and analysis

### Issue 1: Whether the petition is …

**Ratio:** The period of limitation to file a petition under Section 7 & 9 IBC 2016 is three

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**Reasoning:** The court reasoned that the petition was filed after the expiry of three years from the

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**Interpretation:** The interpretation of the Limitation Act, 1963, specifically Article 137, is

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**Application:** The court applied the ratio to the facts of the case, noting that the due dates

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## Parties

- **Judges:** P. Moha…; KAUSHALENDRA…
- **Appellants:** GRASIM INDUSTRIES…
- **Respondents:** MADHYA BHARAT…

## Timeline

- **2014-10-26 — First Invoi…**: First invoice date of the 24…
- **2016-12-03 — Last Invoic…**: Last invoice date of the 24…

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