Requesting Ledger/Statement From Operational Creditor Is Not Admission Of Claim, Does Not Renew Limitation: NCLT Indore
The National Company Law Tribunal (“NCLT”), Indore Bench comprising of Dr. Madan B. Gosavi (Judicial Member) and Shri Kaushalendra Kumar Singh (Technical Member), while adjudicating an application filed in Oswal Pumps Limited v Bhopal Tractors Pvt. Ltd., has held if a Corporate Debtor merely requests statements or ledger from the Operational Creditor for verification, then such...
The National Company Law Tribunal (“NCLT”), Indore Bench comprising of Dr. Madan B. Gosavi (Judicial Member) and Shri Kaushalendra Kumar Singh (Technical Member), while adjudicating an application filed in Oswal Pumps Limited v Bhopal Tractors Pvt. Ltd., has held if a Corporate Debtor merely requests statements or ledger from the Operational Creditor for verification, then such act would not amount to an admission of claim and would not renew the limitation period.
Background Facts
Oswal Pumps Limited (“Operational Creditor”) supplied submersible pumps, monoblock pumps, and electric motors goods to Bhopal Tractors Pvt. Ltd. (“Corporate Debtor”). In 2014-2015, the Parties entered into Clearing and Forwarding agreement for smooth and fluent operations. The Corporate Debtor failed to make payment against certain invoices raised by the Operational Creditor.
On 18.03.2019 the Operational Creditor issued a Demand Notice under Section 8 of the Insolvency & Bankruptcy Code, 2016 (“IBC”) to the Corporate Debtor, the latter raised a dispute in view of the claim.
The Operational Creditor filed an application under Section 9 of IBC, seeking initiation of Corporate Insolvency Resolution Process (“CIRP”) against the Corporate Debtor, over a default of Rs. Rs 39,89,321/- inclusive of interest.
The Operational Creditor argued that it has been providing statements and ledger to the Corporate Debtor for receiving claims and outstanding dues. Further, the Corporate Debtor had addressed emails o the Operational Creditor seeking account statement regarding the claim to the tune of Rs. 22,52,409/-, for verification and payment of outstanding claim. The Corporate Debtor argued that since the date of default is 08.03.2015, the application is barred by limitation.
NCLT Verdict
The Bench observed that mere act of requesting statements from the Operational Creditor by the Corporate Debtor, does not amount to an admission of claims. Consequently, the limitation period does not get renewed. The application was dismissed for being barred by limitation.
Case Title: Oswal Pumps Limited v Bhopal Tractors Private Limited
Case No.: TP/172/MP/2019
Counsel for Applicant: Ld. Adv. Mr. Madhav Lohati
Counsel for Respondent: Ld. Adv. Mr. Uday Joshi