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

> NCLT judgment dated 2022-06-01. Citation: TCN-2022-NCLT-02481. 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-02481
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/advance-syntex-limited-cpib-42ahm2022-b64d1bea

## 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 Rs. 90,36,403/-, which is less than Rupees One Crore. The application was deemed not maintainable because the default amount was below the threshold specified in the Notification of the Ministry of Corporate Affairs, New Delhi, dated 24th March, 2020, read with Section 4 of the IBC, 2016. The Hon'ble NCLAT's judgment dated 25th October 2021 in the matter of Jumbo Papers Products vs. Hansraj Agrofresh Pvt. Ltd. supported this decision. The issue in the NCLAT judgment is pending before the Supreme Court. The application was disposed of, but

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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 reasoned that the default amount of Rs. 90,36,403/- is less than Rupees One

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**Interpretation:** Section 4 of the IBC, along with the notification, sets a minimum threshold for

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**Application:** Since the default amount was below the specified threshold, the application was

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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 was…
- **2020-03-24 — Notificatio…**: Notification of the Ministry of Corporate…

## 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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