# In the matter of Palak Agency Private Limited

> NCLT judgment dated 2024-01-16. Citation: TCN-2024-NCLT-03050. AJS Impex Private Limited, through its Resolution Professional Hemant Kumar Shah, filed an…

- **Court:** NCLT
- **Order date:** 16 Jan 2024
- **Citation:** TCN-2024-NCLT-03050
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/palak-agency-private-limited-45ee3748

## Summary

### Background

AJS Impex Private Limited, through its Resolution Professional Hemant Kumar Shah, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Palak Agency Private Limited, the Corporate Debtor. The claim was based on a default in payment of an outstanding principal amount of Rs. 9,46,36,222/- and interest of Rs. 7,36,15,716/- as of 29.07.2023. The Operational Creditor, AJS Impex Private Limited, is involved in the business of trading iron and steel products and had supplied goods to the Corporate Debtor under invoices dated 31.01.2020 and 03.02.2020.

## Facts

AJS Impex Private Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Palak Agency Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs. 9,46,36,222/- (principal) and Rs. 7,36,15,716/- (interest) as of 29.07.2023. The Operational Creditor is in the business of trading iron and steel products and supplied goods to the Corporate Debtor under invoices dated 31.01.2020 and 03.02.2020, totaling Rs. 10,41,36,222/-, of which Rs. 95 Lakhs was paid. The Operational Creditor submitted an interest ledger and confirmation of accounts dated 27.11.2020. The Corporate Debtor

…

## Issues and analysis

### Issue 1: Whether the application for initiation of CIRP is barred under Section 10A of the Insolvency and …

**Ratio:** Section 10A of the Insolvency and Bankruptcy Code, 2016, prohibits the initiation of CIRP

…

**Reasoning:** The court observed that the default dates, whether considered as 01.05.2020 and

…

**Interpretation:** Section 10A provides a specific bar on initiating CIRP for defaults occurring

…

**Application:** Since the default dates fell within the prohibited period under Section 10A,

…

## Parties

- **Judges:** ANIL RAJ C…; Kuldip Kumar…
- **Appellants:** AJS Impex Private…
- **Respondents:** Palak Agency…

## Timeline

- **2020-01-31 — Invoice…**: One of the invoice dates for goods supplied by the Operational Creditor to the Corporate…
- **2020-02-03 — Invoice…**: Another invoice date for goods supplied by the Operational Creditor to the Corporate…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/palak-agency-private-limited-45ee3748