# In the matter of Suchi Paper Mills Limited (IB)-603(ND)2020

> NCLT judgment dated 2022-09-12. Citation: TCN-2022-NCLT-01102. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 12 Sept 2022
- **Citation:** TCN-2022-NCLT-01102
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/suchi-paper-mills-limited-ib-603nd2020-edac711c

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) by M/s. Flourish Paper & Chemicals Limited (Operational Creditor) against M/s. Suchi Paper Mills Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The Operational Creditor claimed that the Corporate Debtor defaulted on payments for supplied PAC (Powder) and Sizing Agent (Flopap SS-5840). The Corporate Debtor argued that the application was time-barred and that there was a pre-existing dispute regarding the quality of the supplied goods, for which they had claimed compensation.

## Facts

M/s. Flourish Paper & Chemicals Limited (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Suchi Paper Mills Limited (Corporate Debtor) for default in payment of operational debt. The Operational Creditor supplied PAC (Powder) and Sizing Agent (Flopap SS-5840) to the Corporate Debtor, raising invoices for the same. The total amount of debt claimed was Rs. 13,42,230/- as principal and Rs. 7,49,460/- as interest calculated up to 31/12/2019. The last invoice date was 02/08/2017. The Corporate Debtor made a part payment of Rs. 4,00,000/- on 07/07/2017. The Operational Creditor issued a demand notice on 02/01/2020, which was delivered on 06/01/2020. The Corporate Debtor replied to the demand notice on

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## Issues and analysis

### Issue 1: Whether the application under Section 9 …

**Ratio:** Section 9 of the IBC, read with the Limitation Act, requires an application to be filed

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**Reasoning:** The Adjudicating Authority considered the dates of the last invoice (01.12.2016) and the

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**Interpretation:** The interpretation of Section 19 of the Limitation Act, 1963, is that any

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**Application:** In this case, the part payment made on 07.07.2017 extended the limitation

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## Parties

- **Judges:** Sh. Dharminder…; SH. L. N.…
- **Appellants:** M/s. Flourish…
- **Respondents:** M/s. Suchi Paper…

## Timeline

- **2016-12-01 — Due Date of Las…**: The due date of payment for the…
- **2017-07-07 — Part Payment by…**: The Corporate Debtor made a part payment of…

## 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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