# In the matter of Patel Engineering Limited

> NCLT judgment dated 2024-02-07. Citation: TCN-2024-NCLT-02737. This case involves an application filed by M/s. Synergy Property Development Services Private…

- **Court:** NCLT
- **Order date:** 7 Feb 2024
- **Citation:** TCN-2024-NCLT-02737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/patel-engineering-limited-fe0baf84

## Summary

### Background

This case involves an application filed by M/s. Synergy Property Development Services Private Limited (Operational Creditor - OC) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Patel Engineering Limited (Corporate Debtor - CD). The OC claimed an operational debt of Rs. 1,15,77,256/- including principal and interest, based on unpaid invoices for services rendered during 2013-2014. The CD contested the application, arguing it was barred by limitation and raised disputes regarding the quality of work and invoices.

## Facts

Synergy Property Development Services Private Limited (Operational Creditor - OC) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Patel Engineering Limited (Corporate Debtor - CD). The OC claimed an operational debt of Rs. 1,15,77,256/- based on unpaid invoices for services rendered as a Project Management and Construction Consultant for the CD's project called “Construction of Patel Corporate Office-Mumbai”. The agreement between the OC and CD was dated 01.02.2011. The OC was appointed as the Consultant. The OC raised invoices between 01.03.2013 and 01.09.2014. The OC issued a demand notice under Section 8 of the IBC on 17.01.2017, to which the CD replied on

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## Issues and analysis

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

**Ratio:** The limitation period for filing an application under Section 9 of the IBC is three years

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**Reasoning:** The court found that the application was filed on 22.03.2018, while the last payment made

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**Interpretation:** Section 238A of the IBC, when read with Article 137 of the Limitation Act, sets

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**Application:** In this case, the last payment was made on 20.12.2013, and the application was

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Synergy Property…
- **Respondents:** Patel Engineering…

## Timeline

- **2011-02-01 — Agreement…**: The Operational Creditor (OC) and Corporate Debtor (CD) entered into an agreement where…
- **2013-03-01 — Invoice…**: Invoices were raised by the OC to the CD…

## 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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