TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
When case Id is present, search is done only for this
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Operational Creditor's Insolvency Application Dismissed: Barred by Limitation, Pre-existing Dispute</h1> <h3>Emdee Digitronics Private Limited Versus Medicare Insurance TPA Services (India) Private Limited</h3> Emdee Digitronics Private Limited Versus Medicare Insurance TPA Services (India) Private Limited - TMI Issues Involved:1. Maintainability of the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code).2. Limitation period for filing the application.3. Existence of a pre-existing dispute between the Operational Creditor and the Corporate Debtor.Issue-wise Detailed Analysis:1. Maintainability of the Application:The Operational Creditor, M/s. Emdee Digitronics Private Limited, filed an application under Section 9 of the I&B Code for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor, M/s. Medicare Insurance TPA Services (India) Private Limited, alleging default in payment of Rs. 78,38,847.54 inclusive of interest. The Corporate Debtor contended that the application was not maintainable due to suppression of material facts and that the Operational Creditor had previously approached the West Bengal Micro and Small Enterprises Facilitation Council, whose award was set aside by the Additional District Judge. The Corporate Debtor argued that the application was barred by principles of res judicata and limitation, and was also bad for non-joinder of necessary parties.2. Limitation Period:The Operational Creditor claimed that the unpaid principal amount due was Rs. 14,51,396 for services rendered from January 2009 to September 2009. The last payment was received on 23rd June 2009, and the application was filed on 29th June 2018. The Operational Creditor argued that the period taken for litigation before the West Bengal Micro and Small Enterprises Facilitation Council (up to 27th April 2017) should be excluded from the limitation period. However, the Tribunal held that Article 137 of the Limitation Act, 1963 applies to applications under the I&B Code, and the right to sue accrues when a default occurs. Since the default occurred on 21st July 2009, the application should have been filed within three years from that date. The Tribunal concluded that the application filed on 29th June 2018 was barred by limitation.3. Existence of Pre-existing Dispute:The Corporate Debtor argued that there was a pre-existing dispute regarding the non-compliance of terms in the work orders, as evidenced by the judgment of the Additional District Judge, which set aside the Facilitation Council's award due to non-consideration of the dispute raised by the Corporate Debtor. The Tribunal found that the pre-existing dispute was still pending, and the Corporate Debtor successfully established the existence of a dispute before the issuance of the demand notice.Conclusion:The Tribunal concluded that the Operational Creditor failed to establish that the debt was due and payable under any law and that the claim was within the period of limitation. The existence of a pre-existing dispute was also established by the Corporate Debtor. Accordingly, the application was dismissed.Order:The application CP(IB) No. 1249/KB/2018 was dismissed with no order as to costs. The Registry was directed to communicate the order to the Operational Creditor and the Corporate Debtor by Speed Post and E-mail, and to issue a certified copy of the order to all concerned parties upon compliance with requisite formalities.
TaxTMI 
TaxTMI 
