# In the matter of Shri Shyam Madhav Polybags Pvt. Ltd. CP No. (IB)- 85-9-JPR-2021

> NCLT judgment dated 2022-11-16. Citation: TCN-2022-NCLT-00422. M/s Colorplas Polyadditives LLP, an operational creditor, filed an application under Section 9…

- **Court:** NCLT
- **Order date:** 16 Nov 2022
- **Citation:** TCN-2022-NCLT-00422
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/shri-shyam-madhav-polybags-pvt-ltd-cp-no-ib-85-9-jpr-2021-0536eb89

## Summary

### Background

M/s Colorplas Polyadditives LLP, an operational creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate a Corporate Insolvency Resolution Process (CIRP) against Shri Shyam Madhav Polybags Pvt. Ltd., the corporate debtor. The operational creditor claimed that the corporate debtor had defaulted on payments for goods supplied, with outstanding invoices dating from August 23, 2017, to January 2, 2018, amounting to Rs. 3,15,650. The application was filed on 25.09.2021.

## Facts

M/s Colorplas Polyadditives LLP (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against Shri Shyam Madhav Polybags Pvt. Ltd. (Corporate Debtor). The Operational Creditor supplied chemicals and chemical products to the Corporate Debtor. There was no dispute regarding the quantity or quality of goods at the time of delivery. The Corporate Debtor failed to pay outstanding invoices amounting to Rs. 3,15,650 for the period August 23, 2017, to January 2, 2018. The Corporate Debtor is a Private Limited Company incorporated on July 16, 2014. The Operational Creditor sent a statutory demand notice on August 5, 2020, via speed post and email. The demand notice sent

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## Issues and analysis

### Issue 1: Whether the present insolvency application is maintainable in terms of Section 4 of the Code, …

**Ratio:** The minimum amount of default for initiating CIRP under Section 4 of the IBC is Rupees

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**Reasoning:** The Adjudicating Authority relied on the notification dated March 24, 2020, which

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**Interpretation:** Section 4 of the IBC, as amended by the notification, sets a pecuniary

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**Application:** In this case, the application was filed after March 24, 2020, and the amount of

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## Parties

- **Judges:** Deep Chandr…; Prasanta Kumar…
- **Appellants:** M/s Colorplas…
- **Respondents:** Shyam Madhav…
- **Advocates:** Sakshi…; Amol…; +1 more

## Timeline

- **2017-08-23 — Start of Invoi…**: Start date of the outstanding…
- **2018-01-02 — End of Invoic…**: End date of the outstanding invoices…

## 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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