In the matter of Gujarat Wedge Wire Screens Limited

The case is fixed for pronouncement of order. The order is pronounced in open Court, vide separate sheet.

-SD- -SD- SAMEER KAKAR SHAMMI KHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited BEFORE THE ADJUDICATING AUTHORITY NATIONAL COMPANY LAW TRIBUNAL DIVISION BENCH –I, AHMEDABAD

CP(IB)/355(AHM)/2020 (An application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 r/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016)

In the matter of M/s. Gujarat Wedge Wire Screens Limited

M/s. Murphy Steel Registered office at: 90, Ardeshir Dady, Street, Off VP Road, Mumbai-400004

…Applicant/Operational Creditor

VERSUS

M/s. Gujarat Wedge Wire Screens Limited Registered address at: 1707, GIDC Industrial Estate, Halol, Panchmahal-389350, Gujarat.

…Respondent/Corporate Debtor Order pronounced on 31.10.2023 CORAM: SHAMMI KHAN, MEMBER (JUDICIAL) SAMEER KAKAR, MEMBER (TECHNICAL)

CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited Appearance For the Applicant : Mr. Piyush Luktuke, Adv. For the Respondent : Mr. Ashutosh Dave, Adv.

(Per: BENCH) 1. This is an application filed on 23.10.2020 by M/s. Murphy Steel (hereinafter referred to as ‘the Applicant/Operational Creditor’) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IB Code) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 against M/s Gujarat Wedge Wire Screens Limited (hereinafter referred to as ‘the Respondent/Corporate Debtor) for initiation of Corporate Insolvency Resolution Process (CIRP), to appoint Interim Resolution Professional (hereinafter referred to as “IRP”) and to initiate the moratorium for having defaulted in payment of its outstanding dues Rs.15,706,741/-.

2. On perusal of Part-I of the Form-V reveals that the Applicant/Operational Creditor is a a partnership firm, having registration no. BA-39883 with address as 90,

CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited Ardeshir, Dady Street off VP Road, Mumbai-400004. This application is filed through its Partner by one Mr. Ramesh Kumar Mishrimal Dishi.

3. On perusal of Part-II of the Form-V reveals that the Respondent/Corporate Debtor is one Gujarat Wedge Wires Screens Limited registered on 22.12.1978 with CIN: U27100GJ1978PLC003252, having registered office at 1707, GIDC Industrial Estate, Halol, Panchmahal-389350.

4. Part-III of the Form-V reveals that the Applicant/Operational Creditor has not named IRP and has left to the discretion of this Adjudicating Authority.

5. Part-IV of the Form-V reveals that the total amount of debt is Rs.15,706,741/-. The date of default is stated to be 22.01.2017.

6. It is stated that goods and materials (SS Wire/Rod, Square, Flat, Angle) were supplied by the Applicant/Operational Creditor to the Respondent/Corporate Debtor. The details of various

CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited invoices are given in Table A. A scanned copy of Table-A is reproduced below:

CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited

CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited 7. The affidavit affirming the application is signed by one Mr. RameshKumar Mishrimal Doshi stated to be a partner of the firm.

8. Demand Notice was issued on 26.12.2019 claiming total dues of Rs.15,706,741/- of which the principal amount was Rs.60,79,306/- and interest was Rs.96,27,435.64.

9. Reply was e-filed on 19.02.2021 which is affirmed by one Mr. Rajiv Kisanlal Singhee stated to be one of the Directors of the Company. In reply, it is stated that the first invoice was issued on 09.04.2011. It is the contention of the Respondent that except for one invoice which is dated 07.01.2017 amounting to Rs.8,849/-, all claims are time-barred.

10. The Respondent further states that the Hon’ble Supreme Court in the case of B. K. Educational Services Private Limited v. Parag Gupta and Associates [Civil Appeal No. 23998 of 2017] has held that if the default occurs over three years prior to the date of filing of application, the application would be barred under Article 137 of the Limitation Act, 1963 and that Section 238A of the Code

CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited doesn’t bar limitation. Therefore, if the invoice dated 07.01.2017 is taken into account, it doesn't satisfy the threshold of even Rs.1,00,000/- (Rupees One Lakh) of default as envisaged under Section 4 of the Code.

11. It is further stated that the Demand Notice was defective and not served in the proper form as it was issued under Form-3 and the said defect is not curable.

12. The Ledger Account attached with the application has an opening balance of Rs.78,80,031/- as on 01.04.2016 which is overstated.

13. Written submissions were filed which have been considered here.

14. We have heard counsels and perused the record. It is not in dispute that the materials were supplied by the Operational Creditor to the Corporate Debtor. However, perusal of the application reveals that the debts are very old and are barred by limitation. We agree with the contentions of the Corporate Debtor as quoted in B. K. Educational Society (supra). No explanation has been CP(IB)/355/AHM/2020 M/s. Murphy Steel V/s. Gujarat Wedge Wire Screens Limited given as regards to opening balance how they have arrived and further the Operational Creditor kept quiet for a long time before filing the present application.

15. In view of what is stated above, we dismiss the present application being barred by limitation. No order as to costs. -SD- -SD- SAMEER KAKAR SHAMMI KHAN MEMBER (TECHNICAL) MEMBER (JUDICIAL)

Rajeev/PS