# In the matter of Jinaam's Dress Limited CP (IB)-22(AHM) 2022

> NCLT judgment dated 2022-03-16. Citation: TCN-2022-NCLT-03689. The case involves an application filed by M/s. Ambica Auxiliaries Pvt. Ltd., the Operational…

- **Court:** NCLT
- **Order date:** 16 Mar 2022
- **Citation:** TCN-2022-NCLT-03689
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/jinaams-dress-limited-cp-ib-22ahm-2022-0ef625c7

## Summary

### Background

The case involves an application filed by M/s. Ambica Auxiliaries Pvt. Ltd., the Operational Creditor, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) for initiating the Corporate Insolvency Resolution Process (CIRP) against M/s. Jinaam's Dress Ltd., the Corporate Debtor. The application was based on the Corporate Debtor's alleged default in paying an operational debt of Rs. 30,95,734/-. The Operational Creditor claimed to have supplied goods to the Corporate Debtor between 01.06.2018 and 09.03.2019, raising invoices totaling Rs. 22,80,216, with the outstanding amount, including interest, reaching Rs. 30,95,734/-. A demand notice dated 28.12.2020 was issued to the Corporate Debtor, but the debt remained unpaid, and no reply was received.

## Facts

M/s. Ambica Auxiliaries Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against M/s. Jinaam's Dress Ltd. (Corporate Debtor). The application was based on an alleged default of Rs. 30,95,734/-. The Operational Creditor claimed to have supplied goods to the Corporate Debtor between 01.06.2018 and 09.03.2019, raising invoices totaling Rs. 22,80,216/-. A demand notice dated 28.12.2020 was issued to the Corporate Debtor, but the debt remained unpaid. The Corporate Debtor contested the application, arguing the absence of a specified default date and that the debt amount did not meet the threshold limit under Section 4 of the IBC, 2016. The Learned

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016 is maintainable given the threshold limit …

**Ratio:** The threshold limit for initiating CIRP under Section 4 of the IBC, 2016, is a crucial

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**Reasoning:** The court relied on the NCLAT's decision in Jumbo Paper Products versus Hansraj Agrofresh

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**Interpretation:** Section 4 of the IBC, 2016, sets the minimum default amount required for

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**Application:** In this case, the application was filed on 18.02.2021, after the threshold

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## Parties

- **Judges:** Madan B.…; KAUSHALENDRA…
- **Appellants:** Ambica Auxiliaries…
- **Respondents:** Jinaam's Dress…; Jinaam's Dr…
- **Advocates:** Vinod Kuma…; Pavan S. Go…

## Timeline

- **2018-06-01 — Goods Sup…**: Operational Creditor supplied…
- **2019-03-09 — Goods Sup…**: Operational Creditor supplied…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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