# In the matter of Radha Exports (India) Pvt. Limited Vs. KP Jayaram & Anr. Civil Appeal No. 7474 of 2019

> SC judgment dated 2020-08-28. Citation: TCN-2020-SC-00042. This case involves an appeal against a judgment and order dated 2nd September, 2019, by the…

- **Court:** SC
- **Order date:** 28 Aug 2020
- **Citation:** TCN-2020-SC-00042
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/radha-exports-india-pvt-limited-vs-kp-jayaram-anr-civil-appeal-no-7474-of-2019-d998f580

## Summary

### Background

This case involves an appeal against a judgment and order dated 2nd September, 2019, by the National Company Law Appellate Tribunal (NCLAT), New Delhi, which allowed a Company Appeal (AT) (INS) No.224 of 2019 against an order dated 19th December, 2018, passed by the National Company Law Tribunal (NCLT) at Chennai. The NCLT had rejected an application filed by the Respondents under Section 7 of the Insolvency and Bankruptcy Code, 2016, primarily because the alleged claim of the Respondents was barred by limitation. The appellant, M/S Radha Exports (India) Pvt. Limited, was involved in a financial dispute with the respondents, K.P. Jayaram & Anr., regarding a loan advanced to the appellant's predecessor proprietorship concern, M/s Radha Exports. The respondents

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## Facts

1. Between 2002 and 2003, K.P. Jayaram & Anr. (Respondents) advanced Rs.2.10 crores to M/s Radha Exports, a proprietorship concern of Mrs. Radha Gouri.
2. In 2004-2005, the Respondents advanced a further Rs.10 lakhs to M/s Radha Exports, totaling Rs.2.20 crores. The loan was unsecured and interest-free.
3. Between October 2003 and March 2004, M/s Radha Exports repaid Rs.80,40,000 to the Respondents.
4. On March 31, 2004, M/s Radha Exports had a loan liability of Rs.1,39,60,000 to the Respondents.
5. M/S Radha Exports (India) Pvt. Limited (Appellant) was incorporated on July 19, 2004, taking over the business of M/s Radha Exports, including its liabilities.
6. On July 19, 2004, the Respondents requested the Appellant to convert Rs.90,00,000 of the outstanding loan into

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC is maintainable when the claim is allegedly …

**Ratio:** The Limitation Act applies to applications filed under Sections 7 and 9 of the IBC.

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**Reasoning:** The court reasoned that the applicant invoking the Corporate Insolvency Resolution

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**Interpretation:** This interprets the interplay between the IBC and the Limitation Act,

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**Application:** The court applied this principle to the facts, noting that the last loan amount

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## Parties

- **Judges:** INDIRA BA…; Arun Mi…
- **Appellants:** M/S RADHA EXPORTS…
- **Respondents:** K.P. JA…
- **Other parties:** Over Tu…

## Timeline

- **2002-11-01 — Loan Advan…**: Respondents advanced Rs.2.10 crores to M/s Radha Exports between November 2002 and…
- **2004-07-19 — Incorporation of…**: M/S Radha Exports (India) Pvt. Limited was incorporated, taking over the business of M/s…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 62 — Appeal to Supreme Court](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-62)

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