# In the matter of Advance Syntex Limited CP(IB)-42(AHM)2022

> NCLT judgment dated 2022-06-01. Citation: TCN-2022-NCLT-02496. The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. The…

- **Court:** NCLT
- **Order date:** 1 Jun 2022
- **Citation:** TCN-2022-NCLT-02496
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advance-syntex-limited-cpib-42ahm2022-5c41f6df

## Summary

### Background

The application was filed under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was filed on 19.01.2022. The default amount is stated to be Rs. 90,36,403, which is less than Rupees One Crore.

## Facts

Mr. Vijay Shah, Proprietor of Poly Dye Chem Corporation, filed an application against Advance Syntex Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. The application was filed on 19.01.2022. The stated default amount is Rs. 90,36,403, which is less than Rupees One Crore. The Ministry of Corporate Affairs notification dated 24th March, 2020, read with Section 4 of the IBC, 2016, sets a threshold. The Hon'ble NCLAT's judgment dated 25th October 2021 in Jumbo Papers Products vs. Hansraj Agrofresh Pvt. Ltd. supports the decision that the application is not maintainable due to being below the threshold. The issue in the NCLAT judgment is pending before the Supreme Court.

## Issues and analysis

### Issue 1: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is maintainable …

**Ratio:** An application under Section 9 of the IBC is not maintainable if the default amount is

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**Reasoning:** The court relied on the notification of the Ministry of Corporate Affairs, New Delhi,

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**Interpretation:** Section 4 of the IBC, along with the notification from the Ministry of

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**Application:** In this case, the default amount is Rs. 90,36,403, which is less than Rupees

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## Parties

- **Judges:** Dr.Deepti…; Ajai Das Me…
- **Appellants:** Mr Vijay Shah…
- **Respondents:** Advance syntex…

## Timeline

- **2022-01-19 — Application…**: The application under Section 9 of the…
- **2020-03-24 — Notificatio…**: Date of the Ministry of Corporate Affairs notification regarding the threshold for…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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