# In the matter of Fiitjee Ltd. IB-224-ND-2021

> NCLT judgment dated 2022-04-22. Citation: TCN-2022-NCLT-03116. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC)…

- **Court:** NCLT
- **Order date:** 22 Apr 2022
- **Citation:** TCN-2022-NCLT-03116
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/fiitjee-ltd-ib-224-nd-2021-aba7bcf6

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code (IBC) for the initiation of the Corporate Insolvency Resolution Process (CIRP). A Section 8(1) notice was issued on February 3, 2021, and the Section 9 application was filed on February 24, 2021, for a default amount of Rs. 30,09,215/-. The Central Government, exercising its powers under Section 4 of the IBC, had specified one crore rupees as the minimum default amount.

## Facts

Mr. Nilesh Kumar, the petitioner, filed an application under Section 9 of the IBC against M/s. Fiitjee Ltd., the corporate debtor, seeking initiation of CIRP for a default amount of Rs. 30,09,215/-. A Section 8(1) notice was issued on February 3, 2021, and the Section 9 application was moved on February 24, 2021. The Central Government had specified one crore rupees as the minimum default amount under Section 4 of the IBC. The application was filed after March 24, 2020.

## Issues and analysis

### Issue 1: Whether the Section 9 application for initiation of CIRP is maintainable when the default amount is …

**Ratio:** The minimum threshold for initiating CIRP under Section 9 of the IBC is determined by the

…

**Reasoning:** The court reasoned that the Central Government, in exercise of powers conferred by the

…

**Interpretation:** Section 4 of the IBC allows the Central Government to specify the minimum

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**Application:** In this case, the default amount was Rs. 30,09,215/-, which is below the

…

## Parties

- **Judges:** P.S.N. P…; RAHUL BHA…
- **Appellants:** Nilesh…
- **Respondents:** M/s. Fiitje…

## Timeline

- **2021-02-03 — Section 8(1) Notice…**: A Section 8(1) demand notice was…
- **2021-02-24 — Section 9 Application…**: The Section 9 application 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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