NCLAT upholds dismissal of CIRP plea as it was time-barred and there was a pre-existing dispute between parties
- Blog|News|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 13 December, 2021
Latest from Taxmann
Case Details: Crown Tobacco Company (P.) Ltd. v. Crale Food links (P.) Ltd. - [2021] 133 taxmann.com 61 (NCLAT- New Delhi)
Judiciary and Counsel Details
-
- Anant Bijay Singh, Judicial Member and Ms. Shreesha Merla, Technical Memmber
- Mayank Kshirsagar, Ms. Darryl Pereia, Ms. Leandra Silveira, Ms. Sonja Curzai and Dhruv Chawla, Advs. for the Appellant.
- Royston J. Pereira, Apoorv Shukla, Ms. Ishita Farsaiya, Kunal Cheema, Ms. Prabhleen Kaur, Advs. and Ms. Leonys Pereria for the Respondent.
Facts of the Case
In the instant case, the appellant (the operational creditor) entered into a Business Conduction Agreement (BCA) on 29-4-2010 with the respondent (corporate debtor) for operating restaurant & Lounge bar from business premises of which appellant had a valid license. The BCA was initially for 5 years which was subsequently extended for another 2 years.
On 30-9-2017 the BCA got expired by efflux of time. The corporate debtor company vacated the possession of business premises. The Monthly conducting fee and the utility bills for August and September remain unpaid. The Municipal Assessment Taxes from June 2010 to September 2017 had also not been paid.
The appellant sent a letter to the respondent Company, seeking clearance of outstanding dues. However, no response was received from the respondent. The appellant on 19-2-2018 sent a demand notice under section 8 calling upon the respondent to clear the outstanding amount.
The respondent company denied its liability to pay any outstanding amount to the appellant on grounds, of pre-existence of disputes, viz. suit pending before the Court of Small Causes and the Commercial Suit pending before the Bombay High Court.
NCLAT Held
Appellant filed a petition under section 9 on 12-3-2018 before NCLT which by impugned order dismissed the petition holding that all claims before 12-3-2015 were barred by limitation.
On appeal, the NCLAT upheld the dismissal of CIRP plea by NCLT as it was time-barred and there was a pre-existing dispute between parties. The Appellate Tribunal, finding no merit in the appeal, dismissed the same by agreeing to the reasons mentioned by NCLT.
Case Review
-
- Crown Tobacco Co. (P.) Ltd. v. Crale Food Link (P.) Ltd. [2020] 120 taxmann.com 168 (NCLT-Mum.) (para 23) affirmed.
List of Cases Referred to
-
- M. Ravindranath Reddy v. G. Kishan [2020] 113 taxmann.com 526 (NCL-AT New Delhi) (para 20).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
