# In the matter of Netizen Engineering Private Limited C.P. No. 2507-IBC-MB-2019

> NCLT judgment dated 2022-01-18. Citation: TCN-2022-NCLT-04425. Hertz Technologies Pvt. Ltd. (Operational Creditor) filed a company petition seeking to…

- **Court:** NCLT
- **Order date:** 18 Jan 2022
- **Citation:** TCN-2022-NCLT-04425
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/netizen-engineering-private-limited-cp-no-2507-ibc-mb-2019-96738692

## Summary

### Background

Hertz Technologies Pvt. Ltd. (Operational Creditor) filed a company petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Netizen Engineering Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational debt claimed was Rs. 53,59,952.62 for electrical and utility works carried out between 17.08.2009 and 22.01.2015. The Corporate Debtor opposed the petition, arguing it was barred by limitation, incomplete, bad for misjoinder of cause of action, claimed interest contrary to work orders, and an abuse of the Code.

## Facts

Hertz Technologies Pvt. Ltd. (Operational Creditor) sought to initiate CIRP against Netizen Engineering Private Limited (Corporate Debtor) for an operational debt of Rs. 53,59,952.62. The debt arose from electrical and utility works performed between 17.08.2009 and 22.01.2015. The Operational Creditor filed the company petition on 26.04.2019. The Corporate Debtor made a last payment on 11.03.2016. The Operational Creditor issued a demand notice under Section 8 of the IBC on 18.06.2018. The Corporate Debtor argued that the petition was barred by limitation. The Operational Creditor contended that the limitation period should be calculated from the date of the demand notice or the last payment. The Operational Creditor failed to file the inside page containing the

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## Issues and analysis

### Issue 1: Whether the Company …

**Ratio:** The principle of limitation dictates that legal actions must be brought within a

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**Reasoning:** The NCLT reasoned that the Operational Creditor's claims were time-barred because the

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**Interpretation:** The legal issue concerns the interpretation of the Limitation Act and its

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**Application:** The NCLT applied the principles of limitation to the specific facts of the

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Hertz Technologies…
- **Respondents:** Netizen Engineerin…; Netizen Engineerin…

## Timeline

- **2009-08-17 — Start of…**: Operational Creditor started carrying out electrical and utility works for the Corporate…
- **2015-01-22 — End of W…**: Operational Creditor completed the electrical…

## 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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