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2021 (11) TMI 947 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - time limitation - threshold limit for filing appeal - existence of debt and dispute or not - HELD THAT - In Part-IV of the application, the total amount of default mentioned is of ₹ 3,00,438/- and the date of default are of 17.07.2018 for the site Sector-48, Gurgaon and 04.09.2018 for site Emerald Plaza, Sector-65 Gurgaon. The present application is filed on 11.09.2021, much after the issuance of the notification. Of course, the date of default mentioned in Part-IV of the application, according to the applicant, is prior to the issuance of the notification, i.e. relates to the month of September 2018. Since vide Notification dated 24.03.2020 the minimum threshold for initiation of CIRP as per Section 4 of IBC is ₹ 1 crore, and the defaulted amount as per Part-IV of the application is of only ₹ 3,00,438/-, therefore, the application does not fulfill the minimum threshold limit to trigger the Corporate Insolvency Resolution Process. The present application is not maintainable in terms of Section 4 of IBC. Therefore, it is needless to consider the issue of limitation - Application dismissed.
Issues:
1. Maintainability of the application under Section 9 of Insolvency & Bankruptcy Code, 2016. 2. Applicability of the Notification dated 24.03.2020 on the minimum threshold for initiating Corporate Insolvency Resolution Process. 3. Consideration of limitation in the case. Detailed Analysis: 1. The application was filed under Section 9 of the Insolvency & Bankruptcy Code, 2016 for the initiation of Corporate Insolvency Resolution Process against the Corporate Debtor, Unipower Projects Private Limited. The Counsel for the applicant argued that the application was maintainable and within the period of limitation. 2. The key issue revolved around the applicability of the Notification dated 24.03.2020, which enhanced the minimum threshold from ?1 lakh to ?1 crore for triggering the Corporate Insolvency Resolution Process. The Counsel contended that the notification did not apply to this case as the default occurred before its issuance. However, the Tribunal referred to a decision by the Hon'ble NCLAT, which clarified that the enhanced threshold would be applicable to applications filed on or after 24.03.2020, even if the debt was prior to that date. Since the application was filed on 11.09.2021, well after the notification, the Tribunal held that the minimum threshold of ?1 crore was not met as the default amount was only ?3,00,438. 3. The Tribunal concluded that due to the enhanced minimum threshold requirement set by the notification, the application did not fulfill the criteria to trigger the Corporate Insolvency Resolution Process. Therefore, the application was deemed not maintainable under Section 4 of the IBC, and the issue of limitation did not need to be further considered. Consequently, the Tribunal dismissed the application based on this analysis.
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