Heena Metal Private Limited Vs Global Extrusions Pvt. Ltd. (NCLAT Delhi)
The appeal under Section 61 of the Insolvency and Bankruptcy Code, 2016 challenged the order dated 29.11.2023 passed by the National Company Law Tribunal, Ahmedabad, dismissing a Section 9 insolvency petition filed for recovery of an operational debt of ₹1,44,39,812 (principal ₹1,19,67,353 and interest ₹24,72,466).
The Appellant, an operational creditor engaged in manufacturing and trading metals, had business dealings with the Respondent, a manufacturer of brass products. The Appellant supplied goods from its Jamnagar unit between 26.05.2016 and 27.06.2017, raising invoices totaling ₹79,44,085. Between 11.03.2019 and 02.01.2020, the Appellant purchased goods from the Respondent and adjusted these purchases against outstanding invoices, leaving ₹73,59,095 allegedly due from the Jamnagar unit. Additional supplies from the Mumbai unit between 17.10.2018 and 27.05.2019 amounted to ₹49,70,041.
The Appellant contended that upon closure of the Jamnagar unit in 2020, the outstanding ₹73,59,059 was mutually transferred to the Mumbai unit. It relied on ledger entries and confirmations, asserting acknowledgment of debt under Section 18 of the Limitation Act, 1963. The Appellant argued that such acknowledgments extended limitation and that exclusion of the COVID-19 period (15.03.2020 to 28.02.2022) rendered the petition within limitation. Alternatively, it invoked Section 25(3) of the Indian Contract Act, claiming the ledger confirmation constituted a promise to pay a time-barred debt.
