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

> NCLT judgment dated 2022-06-01. Citation: TCN-2022-NCLT-02500. 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-02500
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advance-syntex-limited-cpib-42ahm2022-91dd6601

## 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 default amount was stated to be Rs. 90,36,403, which is less than Rupees One Crore. As per the Notification of the Ministry of Corporate Affairs, New Delhi, dated 24th March, 2020, read with Section 4 of the IBC, 2016, this application is below the threshold and not maintainable. The Hon'ble NCLAT's judgment dated 25th October 2021 in the matter of Jumbo Papers Products vs. Hansraj Agrofresh Pvt. Ltd. supports this. The issue in the said judgment of Hon'ble NCLAT is pending for decision before the Hon'ble Supreme Court. Subject to the outcome of the decision

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## 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 relies 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 Fi…**: The application under Section 9 of the…
- **2020-03-24 — Notificatio…**: Notification of the Ministry of Corporate Affairs, New Delhi, 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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