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TMI Blog2019 (1) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... ncy and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The prayer made is to admit the application, to initiate the corporate insolvency resolution process against the corporate debtor, declare a moratorium and appoint interim resolution professional (IRP) under the Insolvency and Bankruptcy Code, 2016 (I and B Code). 2. Heard counsel for the operational creditor and corporate debtor and perused the pleadings including the documents placed on the case file. 3. The operational creditor has claimed an outstanding debt to the tune of Rs. 4,30,34,092 along with interest at 18 per cent. per annum which as per the operational creditor was due and payable as on February 20, 2018. 4. The brief facts of the case are that the oper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cate on January 29, 2014 to the corporate debtor and its directors wherein the details of claim and part payments made by the corporate debtor to the operational creditor have been mentioned, the copy of notice is placed at pages 129 to 135 and calculation sheet is placed at page 136 of the typed set filed with the application. 6. It has been noted by the Adjudicating Authority that the corporate debtor has given reply on February 24, 2014 to the legal notice of the operational creditor dated January 29, 2014 copy of which is placed at pages 137 to 138 of the typed set filed with the application. It is seen from paragraph 2 of the said reply, the corporate debtor has denied the claim of Rs. 1,99,27,145. However, the corporate debtor has ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out admitting that there are any dues payable, then the same is hopelessly barred by limitation. 8. The corporate debtor has filed a counter statement wherein the claim of the operational creditor has been denied. It has also been stated that the demand notice is improper and defective as the same has not even mentioned the date of default, and the proceedings under the Code ought not to have been permitted to use as money recovery proceedings and especially not in a case of time barred debts as the provisions of the Limitation Act are applicable to the provisions of the I and B Code, 2016. It has also been placed on record that the issue pertaining to limitation under the provisions of the I and B Code, has been kept open by the hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in Speculum Plast P. Ltd. v. PTC Techno P. Ltd. MANU/NL/0163/2017 ; [2018] 2 C-C-OL 695 (NCLAT) wherein the hon'ble National Company Law Appellate Tribunal has held that "the Limitation Act, 1963 is not applicable for initiation of 'corporate insolvency resolution process'". Counsel for the operational creditor has further relied upon the decision given in Neelkanth Township and Construction P. Ltd. v. Urban Infrastructure Trustees Ltd. MANU/NL/0063/2017 ; [2018] 2 Comp Cas-OL 60 (SC) wherein it was held that ". . . for initiation of the corporate insolvency resolution process, the right to apply accrues under section 7 or section 9 or section 10 only with effect from December 1, 2016 when the 'I and B Code' has come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tanding debt claimed by the operational creditor. Therefore, C. P. No. 250/(IB)/CB/2018 is admitted and the commencement of the corporate insolvency resolution process is ordered which ordinarily shall get completed within 180 days, reckoning from the day this order is passed. 15. The moratorium is declared which shall have effect from the date of this order till the completion of corporate insolvency resolution process, for the purposes referred to in section 14 of the I and B Code, 2016. It is ordered to prohibit all of the following, namely : "(a) the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, Tribunal, arbit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the date the copy of this order is received, and call for submissions of claim in the manner as prescribed. 18. The IRP shall comply with the provisions of sections 13(2), 15, 17 and 18 of the I and B Code. The directors of the corporate debtor, its promoters or any person associated with the management of the corporate debtor are/is directed to extend all assistance and co-operation to the IRP as stipulated under section 19, so that he could discharge his functions under section 20 of the I and B Code, 2016. 19. The operational creditor and the registry are directed to send the copy of this order to the IRP, so that he could take charge of the corporate debtor's assets, etc., and make compliance with this order as per the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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