# In the matter of SVG Fashions Pvt. Ltd. (Earlier Known as SVG Fashions Ltd.) Vs. Ritu Murli Manohar Goyal & Anr. Civil Appeal No.4228 of  2020

> SC judgment dated 2022-03-29. Citation: TCN-2022-SC-00060. The appeal arises from an order of the National Company Law Appellate Tribunal (NCLAT) that…

- **Court:** SC
- **Order date:** 29 Mar 2022
- **Citation:** TCN-2022-SC-00060
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/svg-fashions-pvt-ltd-earlier-known-as-svg-fashions-ltd-vs-ritu-murli-manohar-goy-23ad3bac

## Summary

### Background

The appeal arises from an order of the National Company Law Appellate Tribunal (NCLAT) that reversed the order of 'Admission' passed by the National Company Law Tribunal (NCLT). The NCLAT held that the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation. The operational creditor filed the present appeal against this decision.

## Facts

SVG Fashions Pvt. Ltd., the operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code against M/S Arpita Filaments Private Limited, the corporate debtor, claiming that the corporate debtor had business dealings with them since 2013, sold and delivered various fabrics, and was irregular in making payments. The operational creditor issued a demand notice under Section 8 of the Code, which did not receive any response. Before the NCLT, the corporate debtor raised objections, including that the claim was barred by limitation. The NCLT overruled these objections based on a letter dated 28.09.2015, acknowledging liability. The NCLAT reversed the NCLT's decision, holding that the debt arose between 11.08.2013 and 02.09.2013, and the

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## Issues and analysis

### Issue 1: Whether the NCLAT erred in overlooking the letter dated 28.09.2015 and its relevance to the issue …

**Ratio:** The failure of an appellate authority to consider vital evidence vitiates its order,

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**Reasoning:** The Supreme Court found that the NCLAT completely overlooked the pleadings revolving

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**Interpretation:** This highlights the importance of appellate authorities thoroughly examining

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**Application:** In this case, the NCLAT's failure to consider the letter dated 28.09.2015

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## Parties

- **Judges:** V. RAMASUBR…; HEMANT…
- **Appellants:** SVG Fashions Pvt.…
- **Respondents:** Arpita Filaments…; RITU MURLI…

## Timeline

- **2013-08-11 — Debt Arising Period…**: The debt arose during the…
- **2013-09-02 — Debt Arising P…**: The debt arose during the…

## 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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