# In the matter of Modern Syntax (India) Ltd. IA No. 18-JPR-2018 in IB-39-(PB)-2018

> NCLT judgment dated 2018-09-20. Citation: TCN-2018-NCLT-00734. The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016…

- **Court:** NCLT
- **Order date:** 20 Sept 2018
- **Citation:** TCN-2018-NCLT-00734
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/modern-syntax-india-ltd-ia-no-18-jpr-2018-in-ib-39-pb-2018-029cf34f

## Summary

### Background

The case involves an application under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Unit Trust of India & Ors. against Modern Syntax (India) Ltd. The petition was filed by the Financial Creditors seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The Corporate Debtor had dues that were not adjudicated due to legal proceedings between 2000-2016 arising from a reference made to BIFR in 2000. The matter was listed before the NCLT multiple times, with opportunities given to the Corporate Debtor to file a reply, which it failed to do. The Corporate Debtor represented that settlement talks were in progress.

## Facts

Unit Trust of India & Ors. filed an application under Section 7 of the IBC, 2016, against Modern Syntax (India) Ltd. seeking to initiate CIRP. The Corporate Debtor had outstanding dues, including principal, simple interest, overdue amounts, and penal interest, totaling a significant sum. The dues were not adjudicated due to legal proceedings between 2000-2016 arising from a reference made to BIFR in 2000. The matter was listed before the NCLT on 05.03.2018, and multiple opportunities were given to the Corporate Debtor to file a reply. The Corporate Debtor failed to file a reply, citing ongoing settlement talks. The High Court of Judicature of Rajasthan issued a stay order on the NCLT proceedings on 18.09.2018. The Financial Creditor sought to vacate the stay order,

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## Issues and analysis

### Issue 1: Whether the application under Section 7 of the IBC, 2016, should be admitted given the pending …

**Ratio:** The principle is that IBC is a self-contained code designed for the timely resolution of

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**Reasoning:** The court acknowledged the importance of IBC as a time-bound process for expeditious

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**Interpretation:** The interpretation is that while IBC aims for swift resolution, the orders of

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**Application:** In this case, the NCLT restrained itself from proceeding further due to the

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## Parties

- **Judges:** R. VARADH…
- **Appellants:** Unit Trust of…
- **Respondents:** Modern Syntax…
- **Advocates:** Rajeev P…; Anju…; +1 more

## Timeline

- **2000-12-08 — Reference t…**: A reference was made to the Board for Industrial and Financial Reconstruction (BIFR) by…
- **2018-03-05 — Matter Listed Before…**: The matter was first listed before the Tribunal, where a representation was made on…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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