# In the matter of Surendra Trading Company Vs. Juggilal Kamlapat Jute Mills Co. Ltd. & Ors. CA No. 8400-2017

> SC judgment dated 2017-09-19. Citation: TCN-2017-SC-00013. The case involves a civil appeal regarding the initiation of corporate insolvency resolution…

- **Court:** SC
- **Order date:** 19 Sept 2017
- **Citation:** TCN-2017-SC-00013
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/surendra-trading-company-vs-juggilal-kamlapat-jute-mills-co-ltd-ors-ca-no-8400-2-02c281ec

## Summary

### Background

The case involves a civil appeal regarding the initiation of corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC). The appellant, an operational creditor, filed an application under Section 9 of the IBC against the respondent, a corporate debtor, for non-payment of dues. The National Company Law Appellate Tribunal (NCLAT) ruled that the seven-day period for rectifying defects in the application, as stipulated in the proviso to sub-section (5) of Section 9, is mandatory, leading to the rejection of the appellant's application. The appellant challenged this decision in the Supreme Court.

## Facts

M/S. Surendra Trading Company (appellant) supplied raw jute to M/S. Juggilal Kamlapat Jute Mills Company Limited (respondent) in 2001, 2002, and 2003, resulting in outstanding dues of Rs. 17,06,766.95. The corporate debtor acknowledged the debt on October 24, 2004. The appellant could not recover the debt due to the pendency of proceedings under the Sick Industrial Companies Act (SICA), which provided a stay on proceedings under Section 22(1). In 2007, Rainey Park Suppliers Private Limited invested in the corporate debtor and took over its management. The appellant sent notices to Rainey Park to pay the amount, but it remained unpaid. The Sick Industrial Companies Repeal Act was passed, leading to the abatement of proceedings before the Board for Industrial and

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## Issues and analysis

### Issue 1: Whether the time limit prescribed in Insolvency & Bankruptcy Code, 2016 (hereinafter referred …

**Ratio:** The mandate of sub-section (5) of section 7 or sub-section (5) of section 9 or

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**Reasoning:** The NCLAT relied on precedents stating that when an adjudicating authority has to perform

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**Interpretation:** The interpretation of the time limit for admitting or rejecting a petition

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**Application:** The court applied this principle to the case, noting that the NCLAT itself had

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## Parties

- **Judges:** A.K. S…; Ashok Bh…
- **Appellants:** M/S. SURENDRA…
- **Respondents:** M/s. Juggilal…
- **Other parties:** Over Tu…

## Timeline

- **1994-01-01 — Respondent declared as…**: Juggilal Kamlapat Jute Mills Company Limited became a sick industrial company and filed…
- **1994-12-16 — BIFR declares respondent as sick industrial…**: The Board for Industrial and Financial Reconstruction (BIFR) declared the respondent as a…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(7) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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