Whether increase of pecuniary jurisdiction in IBC in year 2020 has any impact on maintainability of IBC petition filed in 2019 but registered /listed in 2021 i.e. after enhancement?

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Whether increase of pecuniary jurisdiction in IBC in year 2020 has any impact on maintainability of IBC petition filed in 2019 but registered /listed in 2021 i.e. after enhancement?

Shubham Budhiraja[1]

 

Mr. A filed section 9 application against B in 2019 but the same got registered in 2021. i.e., after 24/03/2020 notification wherein threshold limit was raised to 1 crore. Hon’ble NCLT dismissed the application for want of threshold limit of 1 crore. Hon’ble NCLAT held that[2]:

 

(i)                 The application was filed in the year 2019 and the subsequent registration of application will not change the date of filing.

 

(ii)                on the date of filing of the application, the threshold which was to be fulfilled was Rupees One Lakh only and not Rs. 1 crore.

 

(iii)              The impugned order is set aside and the application under Section 9 is revived before the Adjudicating Authority to be heard and decided in accordance with law. 

 


[1] Advocate, Delhi High Court [LLB, ACS, BCOM(H)], Budhirajalawchambers@gmail.com , +91-9654055315

[2] Royal Manpower Services v. Faridabad Autocomp System Pvt. Ltd., NCLAT, Company Appeal (AT) (Insolvency) No. 370 of 2023, Judgment dated 06/04/2023 


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