Facts of the case:
The Respondent/Corporate Debtor had placed orders with the Petitioner/Operational Creditor requesting a supply of food grains and grocery items. After supplying the said items, the Operational Creditor raised invoices and only part payment was made by the Corporate Debtor. Hence, a company petition was filed by the Petitioner/ Operational Creditor to initiate Corporate Insolvency Resolution Process (hereinafter referred to as “CIRP”) against the Respondent/Corporate Debtor.
Contentions of the Corporate Debtor:
The Respondent contended that no amount is due or unpaid if various amounts paid by cash, bank transfer, and credit notes for goods that were returned due to poor quality are considered. The Respondent also contended that the invoices that have been raised and relied upon by the Petitioner dates to 2015, and 2016 and hence are barred by limitation. It is also contended that there are 4 restaurants at distinct locations for which supply is required and the Petitioner has clubbed all invoices which can’t be permitted as per law.
Observation and Finding of the Bench:
On the question of Limitation, the Bench observed that the petition has to be filed within 3 years from the date of default of the invoices after excluding the credit period. The contention of the Operational Creditor that despite certain invoices being barred by limitation, since certain invoices are within 3 years, the petition can be admitted is rejected by the Bench as it re-iterates that the tribunal does not have the jurisdiction to cut short the invoices that cause recurring dates of the cause of action as it is not a suit for recovery of money. The same was held in the case of Next Education India Pvt. Ltd. V. K12 Techno Services Pvt. Ltd. (Company Appeal No. 98/2019).
Based on this reasoning the bench dismissed the petition as being barred by limitation.
Decided on: October 12, 2022
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