# In the matter of Swastik Marbogranit Pvt. Ltd. CP (IB) No. 12-ALD-2022

> NCLT judgment dated 2022-05-04. Citation: TCN-2022-NCLT-02892. The case pertains to an application filed under the Insolvency and Bankruptcy Code (IBC). The…

- **Court:** NCLT
- **Order date:** 4 May 2022
- **Citation:** TCN-2022-NCLT-02892
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/swastik-marbogranit-pvt-ltd-cp-ib-no-12-ald-2022-fb93fd73

## Summary

### Background

The case pertains to an application filed under the Insolvency and Bankruptcy Code (IBC). The application was filed after the threshold limit for initiating insolvency proceedings was revised to Rs. 1,00,00,000 on 24.03.2020, while the application was filed on 08.01.2021. The amount in default is Rs. 23,35,179, which is below the revised threshold.

## Facts

The operational creditor filed an application for initiating insolvency proceedings against Sunshine Tiles Company Pvt Ltd. The amount in default was Rs. 23,35,179, which is below the threshold limit of rupees one crore specified in Section 4 of the IBC, as amended on 24.03.2020. The application was filed on 08.01.2021, which is after the date on which the threshold limit was revised. The NCLAT passed an order on 25.10.2021 in Company Appeal (AT) (Insolvency) No. 813 of 2021, which influenced the decision. A related Civil Appeal No. 7032/2021 was filed by Jumbo Paper Products Private Limited vs. Hansraj Agrofresh Private Limited before the Supreme Court.

## Issues and analysis

### Issue 1: Whether the application for initiating insolvency proceedings is maintainable given that the amount …

**Ratio:** The threshold limit for initiating insolvency proceedings is specified in Section 4 of

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**Reasoning:** The court reasoned that since the amount in default was below the revised threshold limit

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**Interpretation:** Section 4 of the IBC specifies the minimum amount of default required for

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**Application:** The court applied the revised threshold limit to the facts of the case, noting

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## Parties

- **Judges:** Rajasekha…; Virendra Kumar…
- **Respondents:** Sunshine Tiles…

## Timeline

- **2020-03-24 — Amendment to Section 4…**: The threshold limit for initiating insolvency…
- **2021-01-08 — Application…**: The application for initiating insolvency…

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