# In the matter of Modern Syntex (India) Limited IA No. 203-JPR-2022 In CP (IB) No. 39(PB)2018

> NCLT judgment dated 2023-04-19. Citation: TCN-2023-NCLT-03737. The case involves an application filed by Dynamix Growth Avenues Private Limited ('Applicant')…

- **Court:** NCLT
- **Order date:** 19 Apr 2023
- **Citation:** TCN-2023-NCLT-03737
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/modern-syntex-india-limited-ia-no-203-jpr-2022-in-cp-ib-no-39pb2018-65d9eef0

## Summary

### Background

The case involves an application filed by Dynamix Growth Avenues Private Limited ('Applicant') under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 ('IBC'/'Code') read with Rule 11 of National Company Law Tribunal Rules, seeking to be included in the Committee of Creditors (CoC) of the Corporate Debtor, Modern Syntex (India) Limited. The Applicant claimed to be a financial creditor based on assignment deeds from three assignor companies. The Resolution Professional (RP) and the Financial Creditor opposed the application, contending that the assignor companies were related parties to the Corporate Debtor and that the assignments were intended to frustrate the CIRP proceedings. The main application bearing number CP (IB) No.39(PB)/2018 was filed by the

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## Facts

Dynamix Growth Avenues Pvt Ltd. filed an application to be included in the Committee of Creditors (CoC) of Modern Syntex (India) Limited, the Corporate Debtor, based on assignment deeds from three companies: Modern Terry Towels, Pallavi Synthetics Private Limited, and Midas Powertech Private Limited. The total claim was approximately Rs. 13000 Crores. Modern Terry Towels was a guarantor for a loan taken by the Corporate Debtor from Unique Credit Bank AG, Germany, and settled the loan after a decree was obtained. Pallavi Synthetics Private Limited claimed to have extended a loan to the Corporate Debtor, which was settled by Mashreq Bank. Midas Powertech Private Limited claimed to have provided financial facilities to the Corporate Debtor. The RP and the Financial

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## Issues and analysis

### Issue 1: Whether the Applicant, Dynamix Growth Avenues Private Limited, should be included in the Committee …

**Ratio:** The inclusion of a creditor in the CoC depends on the validity and enforceability of the

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**Reasoning:** The court found that the Applicant failed to provide sufficient evidence to substantiate

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**Interpretation:** The court interpreted the IBC provisions regarding financial creditors and the

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**Application:** The court applied the ratio to the facts of the case, finding that the

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** Dynamix Growth…
- **Respondents:** Modern Syntex…; Administrator of…

## Timeline

- **2018-01-01 — Main applicati…**: The main application bearing number CP (IB) No.39(PB)/2018 was filed by the Administrator…
- **2022-03-28 — CIRP init…**: CIRP was initiated against the Corporate Debtor and Mr. Partha Sarthy Sarkar ('Resolution…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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