# In the matter of Navmi steel Traders Pvt. Ltd.

> NCLT judgment dated 2024-03-12. Citation: TCN-2024-NCLT-02077. The case involves a petition filed by Deep Star Alloys & Steel Pvt. Ltd. (Operational Creditor)…

- **Court:** NCLT
- **Order date:** 12 Mar 2024
- **Citation:** TCN-2024-NCLT-02077
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/navmi-steel-traders-pvt-ltd-dcbdb897

## Summary

### Background

The case involves a petition filed by Deep Star Alloys & Steel Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Navmi Steel Traders Pvt. Ltd. (Corporate Debtor). The Operational Creditor claims that the Corporate Debtor owes them Rs. 9,79,73,994/- including GST against invoices raised for various purchase orders. The last tax invoice fell due on 16.04.2018, and the last payment was received on 22.09.2020. The Corporate Debtor failed to settle the outstanding payment despite approaches and part payment options provided by the Operational Creditor. A demand notice was issued on 17.10.2023, and served on 21.10.2023 after an initial attempt was

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## Facts

Deep Star Alloys & Steel Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Navmi Steel Traders Pvt. Ltd. (Corporate Debtor). The Corporate Debtor was incorporated on 16.07.2002. The Operational Creditor claimed that the Corporate Debtor owed Rs. 9,79,73,994/- including GST, based on 23 invoices raised for various purchase orders. The last tax invoice was issued on 16.04.2018, and the last payment was received on 22.09.2020. The Operational Creditor had approached the Corporate Debtor multiple times for settlement, even offering part payment options. A demand notice was issued on 17.10.2023 and served on 21.10.2023. The Corporate

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## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is within the period of limitation as …

**Ratio:** The Supreme Court in Suo Motu Writ Petition (C) No.3 of 2020, extended the period of

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**Reasoning:** The Tribunal considered the Supreme Court's orders and found that excluding the period

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**Interpretation:** The interpretation of the limitation period takes into account the extensions

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**Application:** The ratio and reasoning were applied to the facts of the case, considering the

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## Parties

- **Judges:** V. G. Bisht…; SH. PRABHAT…
- **Appellants:** Deep Star Alloys…
- **Respondents:** Navmi steel…

## Timeline

- **2002-07-16 — Incorporation of…**: Navmi Steel Traders Pvt.…
- **2018-04-16 — Last Tax I…**: The last tax invoice was issued by the…

## 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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