2026 (1) TMI 213

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....mpany Law Tribunal, Chandigarh Bench, Chandigarh by which CP (IB) No. 168/Chd/Pb/2021, filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Operational Creditor, namely, M/s Gokul Iron and Hardware Traders (LDH) for resolution of the amount in default of Rs. 1,71,28,172/- which includes Principal Amount of Rs. 84,88,307/- and interest calculated from 09.11.2016 to 30.06.2020 at Rs. 86,39,865/-, has been admitted. 2. At the outset, Counsel for the appellant has submitted that application filed under Section 9 by the OC/Respondent was beyond the period of limitation, therefore, it should have been dismissed by the Ld. Tribunal. In this regard, she has submitted that the demand notice was issued by the Operational Creditor o....

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..... Hindustan Construction Company Ltd., 2024 SCC Online NCLAT 282 to contend that in the cited case the similar controversy was involved and this court has held that instead of Article 1, Article 137 of the Act shall apply. 7. She has submitted that the Tribunal has committed an error in considering acknowledgment on the part of the appellant on the analogy that the goods were sold by the CD to the OC vide invoice G-9 dated 29.11.2018 on credit. 8. It is submitted that if the limitation is counted from 07.11.2016 then the application, having been filed on 06.05.2021, is clearly barred by limitation as the period prescribed under Article 137 of the Act is only 3 years which cannot be extended. 9. She has further submitted that the Tr....

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....der Section 7, 9 and 10 of the Code. Article 137 of the Act provides that the limitation shall be of 3 years when the right to apply would accrue. Article 137 is reproduced as under: Description of suit Period of limitation Time from which period begins to run 137. Any other application for which no period of limitation is provided elsewhere in this Division. Three years When the right to apply accrues. 14. The application under Section 9 was filed on the basis of the last invoice no. 287 dated 07.11.2016, therefore, the default had occurred on 07.11.2016, if the amount was not paid but the invoice issued by the CD on 29.11.2018 regarding the goods sold by to the OC cannot be made the basis for the date of default for f....

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.... present case the right to apply accrued to the operational creditor on 07.11.2016 and not the date when the CD raised his own invoice for the payment of the sold goods by it. 18. Thus, in our considered opinion, the Tribunal has committed an error in holding that the application filed under Section 9 was within the period of Limitation. 19. It is also argued by the CD that the application itself was not maintainable as it was not crossing the threshold. It has been mentioned in the application itself that the Principal amount of Rs. 84,88,307/- is less than the threshold of Rs. 1 Crore but if the component of interest is also added to it then it will cross the threshold. However, the question is as to whether the interest can be adde....