# In the matter of Vallari Trading Private Limited

> NCLT judgment dated 2023-10-17. Citation: TCN-2023-NCLT-01180. Risa International Limited, the Operational Creditor, filed an application under Section 9 of…

- **Court:** NCLT
- **Order date:** 17 Oct 2023
- **Citation:** TCN-2023-NCLT-01180
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/vallari-trading-private-limited-b0441ccc

## Summary

### Background

Risa International Limited, the Operational Creditor, filed an application under Section 9 of the Insolvency & Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Vallari Trading Private Limited, the Corporate Debtor. The application was filed due to a default in payment for the supply of fabric. The Operational Creditor claimed a default amount of Rs. 6,59,59,224/- as the principal amount and Rs. 16,70,19,042/- including interest calculated at 24% p.a. compounded. The date of default was stated as 12.09.2014 onwards.

## Facts

Risa International Limited (Operational Creditor) supplied fabric to Vallari Trading Private Limited (Corporate Debtor). The Corporate Debtor placed orders for fabric in March 2014, and invoices were raised accordingly. Between 24.4.2014 and 25.4.2014, 30 invoices were raised for a total amount of Rs. 6,77,86,453/-. The supplies were acknowledged and never disputed. The Corporate Debtor paid Rs. 3,01,06,677/- between 23/7/2014 and 12/9/2014, but no payments were made thereafter. On 10/12/2018, the Operational Creditor issued a notice under Section 8 of the IBC, claiming Rs. 16,70,19,042/-, which was in default since 12.9.2014. The notice was returned with a remark 'Not Known'. The application was filed on 18.06.2019.

## Issues and analysis

### Issue 1: Whether the petition filed by the Operational Creditor is maintainable considering the limitation …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, prescribes a limitation period for filing

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**Reasoning:** The court reasoned that the last supply was made on 25.06.2014, and the last payment was

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**Interpretation:** The limitation period is strictly construed to ensure timely resolution of

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**Application:** In this case, the petition was filed beyond the three-year limitation period

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## Parties

- **Judges:** Prabhat…; V.G. B…
- **Appellants:** Risa International…
- **Respondents:** Vallari Trading…
- **Advocates:** Raina B…

## Timeline

- **2014-03-01 — Corporate Debtor…**: Vallari Trading Private Limited approached Risa International for the purchase of fabric…
- **2014-04-24 — Invoices…**: Between 24.4.2014 and 25.4.2014, 30 invoices were raised upon the corporate debtor for…

## 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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