# In the matter of Maruti Strips and Ferro Alloys Private Limited

> NCLT judgment dated 2024-05-07. Citation: TCN-2024-NCLT-01415. Navmi Steel Traders Private Limited, the Operational Creditor (OC), filed a Company Petition…

- **Court:** NCLT
- **Order date:** 7 May 2024
- **Citation:** TCN-2024-NCLT-01415
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/maruti-strips-and-ferro-alloys-private-limited-d63cdad3

## Summary

### Background

Navmi Steel Traders Private Limited, the Operational Creditor (OC), filed a Company Petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Maruti Strips and Ferro Alloys Private Limited, the Corporate Debtor (CD), for initiating the Corporate Insolvency Resolution Process (CIRP). The application was filed due to an alleged default of Rs.48,80,96,914/- based on unpaid invoices for the supply of Hot Rolled (HR) Coils. The OC claimed that the CD acknowledged the debt on multiple occasions and sought extensions of time for payment. The CD remained absent during the proceedings, leading to an ex-parte decision.

## Facts

Navmi Steel Traders Private Limited (OC) filed a petition against Maruti Strips and Ferro Alloys Private Limited (CD) under Section 9 of the IBC, claiming a default of Rs.48,80,96,914/- based on unpaid invoices for HR Coils supplied between 17.03.2012 and 05.04.2012. The last invoice was raised on 05.04.2012, and the OC received the last payment on 17.04.2013. The application was filed on 28.09.2022. The CD acknowledged the debt and sought extensions of time for payment in replies to the OC's reminders, including a letter dated 30.04.2014. The OC issued a demand notice on 05.08.2022, which was returned undelivered. The OC then sent the demand notice via email on 27.08.2022. The CD remained absent during the proceedings, and was set ex-parte on 21.06.2023. The OC

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is barred by limitation under the …

**Ratio:** Section 18 of the Limitation Act, 1963 states that an acknowledgment of liability, made

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**Reasoning:** The court found that the Corporate Debtor (CD) had acknowledged the outstanding dues in

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**Interpretation:** The interpretation of Section 18 of the Limitation Act, 1963, as applied in the

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**Application:** In this case, the CD's acknowledgments of debt and requests for extensions of

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Respondents:** Maruti Strips and…

## Timeline

- **2012-03-17 — Invoice Perio…**: Start date of the period during which the Operational Creditor supplied HR Coils to the…
- **2012-04-05 — Invoice Per…**: End date of the period during which the Operational Creditor supplied HR Coils to the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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