# In the matter of Millennium Wires Private Ltd.

> NCLT judgment dated 2023-08-28. Citation: TCN-2023-NCLT-01890. The case involves multiple applications (CA Nos. 458/2019, 769/2019, 892/2019 & IA No.…

- **Court:** NCLT
- **Order date:** 28 Aug 2023
- **Citation:** TCN-2023-NCLT-01890
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/millennium-wires-private-ltd-629bc6c7

## Summary

### Background

The case involves multiple applications (CA Nos. 458/2019, 769/2019, 892/2019 & IA No. 947/2020) arising from CP (IB) No. 159/Chd/PB/2018 under Section 60(5) of the Insolvency and Bankruptcy Code, 2016. The core issue revolves around claims filed by MMTC Ltd. and State Trading Corporation of India Limited (STC Ltd.) against Millennium Wires Private Ltd., a corporate debtor undergoing liquidation. The claims relate to transactions under an Associate Agreement for the import of CC copper wire rods, where disputes arose due to non-delivery of material, dishonored cheques, and alleged fraud. The liquidator rejected these claims, leading to the applications before the NCLT.

## Facts

1. An Associate Agreement was entered into on 30.05.2011 between MMTC and Millennium Wires Private Ltd. for importing CC rods.
2. MMTC was to import CC rods from SIMS Malaysia/Singapore for sale on a 'back-to-back high seas sale' basis to the corporate debtor.
3. The corporate debtor was to deposit 25% of the total CIF value as EMD, kept by MMTC in a Fixed Deposit account.
4. MMTC imported CC rods under the first four lots, which were sold to the corporate debtor, who made full payment.
5. MMTC imported CC rods under the 5th, 6th, and 7th lots, but did not sell the material to the corporate debtor.
6. The 8th lot turned out to be a fraud by SIMS, as the consignment was never shipped.
7. The corporate debtor issued cheques for the 5th, 6th, and 7th lots, which were

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## Issues and analysis

### Issue 1: Whether the delay in filing …

**Ratio:** The principle that limitation must be applied with all its rigors when prescribed by

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**Reasoning:** The court noted the delay in filing the claim and the absence of a justified ground for

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**Interpretation:** This means that claims must be filed within the prescribed timelines, and

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**Application:** The court refused to condone the delay in filing MMTC's claim, as the claim was

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## Parties

- **Judges:** Harnam Singh…; SUBRATA KUM…
- **Appellants:** State Trading…
- **Respondents:** Millennium Wires…; Subhash Saini,…

## Timeline

- **2011-05-30 — Associate Ag…**: Associate Agreement entered into between…
- **2011-12-02 — Associate Agreement…**: STC entered into an Associate Agreement with the corporate debtor for the import of 400…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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