# In the matter of Promozone (India) Private Limited C.P. No. 3802-MB-2019

> NCLT judgment dated 2022-05-12. Citation: TCN-2022-NCLT-02779. Mirah Dekor Private Limited, the Operational Creditor, filed a company petition seeking to…

- **Court:** NCLT
- **Order date:** 12 May 2022
- **Citation:** TCN-2022-NCLT-02779
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/promozone-india-private-limited-cp-no-3802-mb-2019-1224a87b

## Summary

### Background

Mirah Dekor Private Limited, the Operational Creditor, filed a company petition seeking to initiate Corporate Insolvency Resolution Process (CIRP) against Promozone (India) Private Limited, the Corporate Debtor, alleging default in payment of Rs. 77,36,496/-. The Corporate Debtor allegedly committed default in making payment to the Operational Creditor by invoking the provisions of Section 9 of the Insolvency and Bankruptcy Code, 2016. The Operational Creditor is in the business of supplying goods and had an agreement with Maharashtra State Co-operative Consumer Federation Limited (MSCCFL) for the supply of food grain items. The Corporate Debtor approached the Operational Creditor for the supply of these goods.

## Facts

Mirah Dekor Private Limited (Operational Creditor) filed a petition against Promozone (India) Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate CIRP for a default of Rs. 77,36,496/-. The Operational Creditor supplied goods to the Corporate Debtor, who had an agreement with MSCCFL for the supply of food grain items. The Operational Creditor issued a purchase order on 02.05.2012. The Corporate Debtor acknowledged the invoices raised by the Operational Creditor. The Operational Creditor claimed to have supplied materials amounting to Rs. 37,52,70,380.80. The Corporate Debtor cleared most of the dues, except for Rs. 77,36,496/-. The Corporate Debtor sent an email on 29.05.2015 containing the ledger account,

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## Issues and analysis

### Issue 1: Whether the company petition filed by the …

**Ratio:** The principle of limitation dictates that legal proceedings must be initiated within a

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**Reasoning:** The NCLT observed that the Corporate Debtor had admitted the claim in its balance sheets

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**Interpretation:** The court interpreted the acknowledgment of debt in the Corporate Debtor's

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**Application:** The court applied the principle of extended limitation due to acknowledgment of

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## Parties

- **Judges:** H.V. Subb…; Chandra Bha…
- **Appellants:** Mirah Dekor Pvt…
- **Respondents:** Promozone (India)…; Promozone India…

## Timeline

- **2012-05-02 — Purchase Orde…**: The Corporate Debtor issued a purchase…
- **2015-05-29 — Email from Corporate…**: The Corporate Debtor sent an email containing the ledger account, admitting the principal…

## 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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