# In the matter of S.N.J. Trade Link Private Limited IB-1923-ND-2019

> NCLT judgment dated 2023-05-26. Citation: TCN-2023-NCLT-03163. The Operational Creditor, M/s Satkar Logistics Private Limited, filed an application under…

- **Court:** NCLT
- **Order date:** 26 May 2023
- **Citation:** TCN-2023-NCLT-03163
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/snj-trade-link-private-limited-ib-1923-nd-2019-0c0e23f9

## Summary

### Background

The Operational Creditor, M/s Satkar Logistics Private Limited, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s S.N.J Trade Link Private Limited. The Operational Creditor claimed that the Corporate Debtor defaulted on payments for logistics services rendered. The Corporate Debtor contested the application, raising contentions of limitation and pre-existing disputes.

## Facts

M/s Satkar Logistics Private Limited (Operational Creditor) provided logistics services to M/s S.N.J Trade Link Private Limited (Corporate Debtor). The Operational Creditor claimed that the Corporate Debtor defaulted on payments amounting to Rs.3,40,529/- along with an agreed interest of 24% per annum. The date of default was mentioned as 25.06.2016. The Operational Creditor issued a notice under Section 8 of the IBC, 2016 on 27.02.2019. The Corporate Debtor contended that the application was barred by limitation as it was filed on 14.08.2019, more than three years after the date of default. The Corporate Debtor also claimed a pre-existing dispute, citing email correspondence regarding demurrage charges, credit notes, and TDS payments. The relevance of the facts lies

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## Issues and analysis

### Issue 1: Whether the present Application is liable to be …

**Ratio:** The provisions of the Limitation Act, 1963 are applicable to IBC proceedings, and the

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**Reasoning:** The court observed that the date of default was 25.06.2016, and the application was filed

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**Interpretation:** The Limitation Act applies to IBC proceedings, setting a 3-year limit from the

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**Application:** Since the default occurred on 25.06.2016 and the application was filed on

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## Parties

- **Judges:** BACHU VENKAT…; ATUL CHAT…
- **Appellants:** M/s Satkar…
- **Respondents:** M/s S.N.J TRADE…; M/s. S.N.J Trade…

## Timeline

- **2016-06-25 — Date of D…**: The Operational Creditor claimed…
- **2019-02-27 — Section 8…**: Notice u/s 8 of IBC, 2016…

## 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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