# In the matter of Rushabh Lifestyle Private Limited

> NCLT judgment dated 2023-11-21. Citation: TCN-2023-NCLT-00698. The case originates from a Company Petition (CP (IB) No. 3394/MB/C-VI/2019) filed on 19.09.2019…

- **Court:** NCLT
- **Order date:** 21 Nov 2023
- **Citation:** TCN-2023-NCLT-00698
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/rushabh-lifestyle-private-limited-d4e3bc4d

## Summary

### Background

The case originates from a Company Petition (CP (IB) No. 3394/MB/C-VI/2019) filed on 19.09.2019 by Wintry Engineering and Chemicals Private Limited (Operational Creditor) 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. The petition seeks to initiate Corporate Insolvency Resolution Process (CIRP) against Rushabh Lifestyle Private Limited (Corporate Debtor) due to an unpaid operational debt.

## Facts

Wintry Engineering and Chemicals Private Limited (Operational Creditor - OC) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against Rushabh Lifestyle Private Limited (Corporate Debtor - CD). The OC claimed a default amount of Rs. 37,75,360/-, comprising a principal amount of Rs. 30,94,697/- and interest of Rs. 6,80,663/-, based on an arbitral award dated 06.04.2018. The date of default was 21.04.2018, after the expiry of the fifteen-day payment period stipulated in the arbitral award. The OC had served a demand notice under Section 8 of the IBC on 27.06.2019, which the CD failed to respond to. The CD remained absent throughout the arbitration proceedings and before the NCLT,

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## Issues and analysis

### Issue 1: Whether the application under …

**Ratio:** Section 238A of the IBC read with Article 137 of the Limitation Act, 1963, provides a

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**Reasoning:** The NCLT observed that the application was filed on 19.09.2019, which is within three

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**Interpretation:** The limitation period for initiating CIRP under Section 9 is three years from

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**Application:** Since the application was filed within the three-year limitation period, it is

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## Parties

- **Judges:** K. R. SAJI…; SANJIV…
- **Appellants:** Wintry Engineering…
- **Respondents:** M/s. Rushabh…

## Timeline

- **2017-05-12 — Arbitration Proceedings…**: Operational Creditor (OC) initiated arbitration proceedings with the Hindustan Chamber of…
- **2018-04-06 — Arbitral…**: The Arbitral Tribunal passed an award in favor of the OC, directing the CD to pay Rs.…

## 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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