# In the matter of Pee Pee Agro Industries Pvt. Ltd.

> NCLT judgment dated 2024-01-05. Citation: TCN-2024-NCLT-03288. The case involves a petition filed by M/s Tilak Raj Yash Pal, the Operational Creditor, under…

- **Court:** NCLT
- **Order date:** 5 Jan 2024
- **Citation:** TCN-2024-NCLT-03288
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/pee-pee-agro-industries-pvt-ltd-6209b1b4

## Summary

### Background

The case involves a petition filed by M/s Tilak Raj Yash Pal, the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s PEE PEE Agro Industries Pvt. Ltd., the Corporate Debtor, for defaulting on a total outstanding amount of Rs. 59,15,154.33, including interest at 18% per annum. The Corporate Debtor is a company incorporated on 22.11.1994. The Operational Creditor claimed to have supplied sunflower seeds and mustard seeds to the Corporate Debtor, with invoices raised for the same. The Corporate Debtor allegedly defaulted on clearing the bills/invoices, leading to the outstanding liability. The Operational Creditor sent a demand notice under section 8(1) of the IBC, but

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## Facts

M/s Tilak Raj Yash Pal, the Operational Creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s PEE PEE Agro Industries Pvt. Ltd., the Corporate Debtor. The claim was for a total outstanding amount of Rs. 59,15,154.33, including interest at 18% per annum. The Operational Creditor supplied sunflower seeds and mustard seeds to the Corporate Debtor. The invoices stipulated that payments were to be made within 5 days, with interest applicable at 1.5% per month (18% per annum) for delays. The Corporate Debtor allegedly defaulted on payments, leading to the outstanding liability. The last delivery was made on 23/06/2008. The Operational Creditor sent a demand notice dated

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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 for initiation of CIRP is three years

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**Reasoning:** The Adjudicating Authority considered the date of default to be 28/06/2008, based on the

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**Interpretation:** Section 238A of the IBC mandates that the Limitation Act applies to proceedings

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**Application:** The acknowledgments of debt in the audited balance sheets for the financial

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## Parties

- **Judges:** P.S.N. P…; UMESH KUMAR…
- **Appellants:** M/s Tilak Raj…
- **Respondents:** M/s PEE PEE Agro…

## Timeline

- **1994-11-22 — Incorporation of…**: M/s PEE PEE Agro Industries Pvt. Ltd. was incorporated under the provisions of the…
- **2008-06-23 — Last Delivery…**: The last delivery of goods (sunflower seeds, mustard seeds etc.) was made 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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