# In the matter of Saroha Printing & Packaging Private Limited IB-825-(ND)-2020

> NCLT judgment dated 2022-09-15. Citation: TCN-2022-NCLT-01062. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 15 Sept 2022
- **Citation:** TCN-2022-NCLT-01062
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/saroha-printing-packaging-private-limited-ib-825-nd-2020-b161cfd6

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Atishey Jain, the legal heir of Lt. Sh. Kamal Kumar Jain, proprietor of Parash Nath Paper Udyog, against Saroha Printing and Packaging Private Limited, the corporate debtor. The operational creditor, Parash Nath Paper Udyog, had been a regular supplier of duplex board and folding box board to the corporate debtor since 1993. An agreement existed between the parties for payments to be made within 30 days of invoice raising, with an 18% p.a. interest clause for delays. Since 2014, the corporate debtor increased order volumes but began defaulting on timely payments, despite acknowledging the bills. The operational creditor raised invoices from 2017 to 2018. The corporate

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## Facts

Atishey Jain, legal heir of Lt. Sh. Kamal Kumar Jain, proprietor of Parash Nath Paper Udyog, filed an application against Saroha Printing and Packaging Private Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. Parash Nath Paper Udyog had been supplying duplex board and folding box board to the corporate debtor since 1993. The agreement stipulated payments within 30 days of invoice raising, with an 18% p.a. interest clause for delays. Since 2014, the corporate debtor increased order volumes but defaulted on timely payments, despite acknowledging the bills. Invoices were raised from 01.04.2017 to 01.09.2018. The corporate debtor made a last payment of Rs. 2,00,000 on 21.02.2020. Six cheques issued by the corporate debtor were

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## Issues and analysis

### Issue 1: Whether the present petition filed seeking initiation of the CIRP under Section 9 of the Code is …

**Ratio:** Article 137 of the Limitation Act governs petitions filed seeking initiation of CIRP

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**Reasoning:** The court observed that the present petition was filed seeking initiation of the CIRP

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**Interpretation:** Article 137 of the Limitation Act is interpreted to apply to CIRP applications

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**Application:** The court applied this principle to determine whether the petition was filed

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## Parties

- **Judges:** Sh. Dharminder…; BINOD KUMAR…
- **Appellants:** Atishey…
- **Respondents:** Saroha Printing…

## Timeline

- **1993-01-01 — Business Deali…**: Parash Nath Paper Udyog started supplying duplex board and folding box board to Saroha…
- **2014-01-01 — Increased Orders,…**: The corporate debtor increased order volumes…

## 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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