# In the matter of Sagar Detergents Private Limited

> NCLT judgment dated 2025-04-02. Citation: TCN-2025-NCLT-00279. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 2 Apr 2025
- **Citation:** TCN-2025-NCLT-00279
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/sagar-detergents-private-limited-fe1f3045

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy Rules, 2016, by M/s Shiv Gramoudyog Sansthan (Operational Creditor) to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Sagar Detergents Private Limited (Corporate Debtor) due to its failure to pay the total outstanding operational debt of Rs. 5,58,61,981/-. The date of default, as stated in the application, is 20.12.2019. The Operational Creditor is engaged in the business of manufacturing and trading of detergents powder and cakes and was approached by the Corporate Debtor for periodic supplies of the materials as required by them. The Operational Creditor issued various invoices from 15.11.2018 till

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## Facts

M/s Shiv Gramoudyog Sansthan, the Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against M/s Sagar Detergents Private Limited, the Corporate Debtor. The application was based on the Corporate Debtor's failure to pay an outstanding operational debt of Rs. 5,58,61,981/-, with the date of default being 20.12.2019. The Operational Creditor, engaged in manufacturing and trading detergents, supplied materials to the Corporate Debtor based on a verbal agreement with payments due one month after a one-year period. The Operational Creditor issued invoices from 15.11.2018 to 18.03.2020. The Corporate Debtor acknowledged the debt in an email dated 31.07.2024 but

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## Issues and analysis

### Issue 1: Whether the Application …

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

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**Reasoning:** The Tribunal considered the exclusion period provided by the Supreme Court and calculated

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**Interpretation:** The Supreme Court's order in Suo Moto Writ Petition (C) No. 3 of 2020 provided

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**Application:** The Tribunal applied the exclusion period provided by the Supreme Court to the

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** M/S SHIV GRAMOUDYO…
- **Respondents:** M/s Sagar…

## Timeline

- **2018-11-15 — Invoices…**: Operational Creditor issued various…
- **2020-12-20 — Date of D…**: The date of default as…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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