Jai Narain Fabtech Pvt. Ltd. Vs Cheema Spintex Ltd. (NCLAT Delhi)
This appeal arose from an order dated 20 September 2023 dismissing an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the appellant–operational creditor for recovery of Rs. 1,41,57,817/-, which included interest at 18% per annum from the due date. The National Company Law Tribunal (NCLT) rejected the petition on the grounds that it was filed beyond the period of limitation and did not meet the statutory minimum threshold of Rs. 1 crore when interest was excluded. According to the appellant, polyester staple fibre was supplied to the corporate debtor through invoices issued between 20 January 2018 and 7 February 2018. Payments were received periodically, with the last payment of Rs. 6 lakh made on 5 July 2018, as reflected in the appellant’s ledger. The Section 9 application was filed electronically on 12 October 2021 and physically on 18 October 2021, but defects pointed out by the registry remained unresolved due to the commencement of a corporate insolvency resolution process (CIRP) against the corporate debtor on 6 October 2021 in a separate matter. An Interim Resolution Professional (IRP) was appointed, and the appellant submitted its claim in Form B on 2 November 2021. The IRP admitted the claim on 14 February 2022, and the status was updated on the IBBI portal on 16 March 2022. The CIRP order was later withdrawn on 30 May 2022 following a settlement.
