2019 (10) TMI 501

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.... the I&B Code') for 'initiation of corporate insolvency resolution process' against 'Valley Iron & Steel Co. Ltd.' (Corporate Debtor), the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench by impugned order dated 17th December, 2018 rejected the application on the ground that the claim is barred by limitation with the following observations : "11. It is not disputed that Rs. 39,46,440.26 has already been paid by the Respondent to the applicant after issuance of demand notice under Section 8. It is seen that Rs. 54,46,440.26 was the actual amount of unpaid amount due to be paid by the Respondent. Rs. 15,00,000/- was paid by the Respondent through 3 demand drafts in the month of Feb 2018. It is admitted by the p....

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....xplain the delay which pertains to the year 2012. We have noticed that by Demand Drafts of February, 2018, Respondent paid certain amount. In such case, we are of the view that the amount having last paid in February, 2018 the application is not barred by limitation. Learned counsel appearing on behalf of the Appellant submits that after issuance of Demand Notice u/s 8(1), the Respondent also paid a sum of Rs. 39,46,440.26 through RTGS dated 31st May, 2018, therefore, it cannot be said to be a delay or held to be beyond limitation as held by the decision of Hon'ble Supreme Court in "Innoventive Industries Ltd. v. ICICI Bank [ Innoventive Industries Ltd. v. ICICI Bank, (2018) 1 SCC 407] : 27. The scheme of the Code is to ensur....

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....ion to Section 7(1), a default is in respect of a financial debt owed to any financial creditor of the corporate debtor - it need not be a debt owed to the applicant financial creditor. Under Section 7(2), an application is to be made under sub-section (1) in such form and manner as is prescribed, which takes us to the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Under Rule 4, the application is made by a financial creditor in Form 1 accompanied by documents and records required therein. Form 1 is a detailed form in 5 parts, which requires particulars of the applicant in Part I, particulars of the corporate debtor in Part II, particulars of the proposed interim resolution professional in Part III, particula....

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.... where an operational creditor is, on the occurrence of a default, to first deliver a demand notice of the unpaid debt to the operational debtor in the manner provided in Section 8(1) of the Code. Under Section 8(2), the corporate debtor can, within a period of 10 days of receipt of the demand notice or copy of the invoice mentioned in sub-section (1), bring to the notice of the operational creditor the existence of a dispute or the record of the pendency of a suit or arbitration proceedings, which is pre-existing-i.e. before such notice or invoice was received by the corporate debtor. The moment there is existence of such a dispute, the operational creditor gets out of the clutches of the Code." From the aforesaid finding, it is evident....