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Invoice claim dismissed due to time-bar under Insolvency and Bankruptcy Code The Tribunal dismissed the petition under section 9 of the Insolvency and Bankruptcy Code, 2016, as the claim for corporate insolvency resolution against ...
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Invoice claim dismissed due to time-bar under Insolvency and Bankruptcy Code
The Tribunal dismissed the petition under section 9 of the Insolvency and Bankruptcy Code, 2016, as the claim for corporate insolvency resolution against the 'Operational Debtor' was time-barred. The invoices for services rendered between April and September 2013, totaling Rs. 24,18,273.36, were beyond the three-year limitation period, despite attempts to extend it based on cheques tendered in early 2014. The lack of payment confirmation and the absence of dispute raised by the Corporate Debtor contributed to the dismissal of the petition without costs awarded.
Issues: 1. Petition under section 9 of the Insolvency and Bankruptcy Code, 2016 for corporate insolvency resolution. 2. Failure of the 'Operational Debtor' to remit amounts for services rendered. 3. Notice served under section 8 of the Code returned with endorsement "Refused." 4. Lack of dispute raised by the Corporate Debtor regarding the unpaid Operational Debt. 5. Absence of payment confirmation from the Corporate Debtor in the Operational Creditor's account. 6. Claim filed beyond the period of limitation. 7. Legal recoverability of the debt in light of the limitation period.
Analysis: The petitioner initiated a petition under section 9 of the Insolvency and Bankruptcy Code, 2016, seeking corporate insolvency resolution against the 'Operational Debtor,' M/S. PTC Techno Pvt. Ltd., due to non-payment of services provided. Invoices were issued for services rendered between April and September 2013, totaling Rs. 24,18,273.36, inclusive of Central Sales Tax. Despite serving a notice under section 8 of the Code, the Corporate Debtor failed to respond, with the notice being returned as "Refused." The petitioner submitted an affidavit confirming no dispute raised by the Corporate Debtor and provided a certificate from ICICI Bank showing non-receipt of payment for the Operational Debt. The application also included consent from an insolvency professional and 123 invoices as evidence.
The documents revealed that the invoices were raised for services provided from April to September 2013, with the petition filed in March 2017, exceeding the three-year limitation period. The petitioner's counsel attempted to extend the limitation period based on cheques tendered by the Corporate Debtor, but the cheques were dated in early 2014, making the claim time-barred. Acknowledging that a cheque can acknowledge a debt, the Tribunal noted that the limitation period could only be extended from the date of the cheques, rendering the claim beyond the legally recoverable debt timeframe.
Consequently, the Tribunal dismissed the petition under section 9 of the IBC, citing the claim as time-barred and legally unrecoverable. No costs were awarded in the judgment.
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