The Kerala High Court stayed the order of the National Company Law Tribunal (NCLT) Kochi bench which held that the March 24 notification raising the threshold limit for insolvency proceedings as Rupees One Crore will apply only prospectively. Log into your account. 1 Lakh to Rs. Applications are invited for the post of Steno, Assistant. The said provision was modified vide Notification No. Does the notification of enhancing the default limit have prospective effect? Shri Bansi Lal Bhat and Justice (Retd.) "In exercise of the powers conferred by the proviso to section 4 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Central Government hereby specifies one crore rupees as … In perhaps first such decision, the Hon’ble Kolkata Bench of NCLT in the case of Foseco India Limited v. Om Boseco Rail Products Limited had the occasions to examine whether the minimum default limit to Rs. The NCLT admitted the insolvency application, imposed a moratorium in accordance with sections 13 and 15 of the IBC, and approved the appointment of an interim resolution professional. Fresh application can be filed before NCLT against a default amount of more than Rs. On the other hand, the Counsel for the Operational Creditor argued that whether Notification under section 4 of the IBC raising the minimum default limit shall be applicable to the applications pending for admission? 1 Lakh to Rs. One lakh rupees was raised to One crore rupees is prospective in nature and will not apply to pending proceedings. your password CBIC in its Notification No.14/2019-Central Tax hikes the threshold limit of Composition scheme to Rs 1.5 crore. 4 of IBC, can be considered only as prospective, (i.e.) The Corporate Debtor (CD) contended that because of the amendment to section 4 of the IBC that introduced a proviso to Section 4 that, “Provided that the Central Government may, by notification, specify the minimum amount of default of higher value which shall not be more than one crore rupees” is retrospective in operation and therefore this application after the amendment is not maintainable for want of pecuniary jurisdiction of this Tribunal as the amount involved in the matter is less than One Crore. It was contended that the amount claimed by the Corporate Creditor in the proceedings before the Tribunal was to the extent of around Rs. The National Company Law Tribunal, Chennai Bench (NCLT) has held that the March 24 Notification issued by the Central Government on enhanced minimum threshold of Rs 1 crore for initiation on insolvency proceedings is prospective in nature. The NCLT was dealing with an application by a Corporate Debtor seeking a declaration that insolvency plea against it was not maintainable in light of the March 24 Notification. 1 Crore. 1 Lakh to Rs. The Centre issued a Notification on March 24, 2020, under Section 4 of the Insolvency & Bankruptcy Code 2016 (IB Code), where the minimum threshold for a petition to be maintainable before NCLT was increased from Rs. The National Company Law Tribunal, Kochi Bench has said that the March Notification which enhanced the minimum threshold of Rs 1 crore for initiation on insolvency proceedings does not save a Corporate Debtor when the default has taken place before the pandemic and the resultant financial crisis (M/s Tharakan Web Innovations Pvt Ltd vs Cyriac Njavally). 1205 (E) in exercising its power conferred under proviso to Section 4 of Insolvency Bankruptcy Code, 2016 (31 of 2016) (hereinafter referred as “Code” or “IBC”)” enhanced the “ minimum default threshold from INR One Lakh to INR One Crore (hereinafter referred … Kerala High Court Stays NCLT Order Which Held That March 24 Notification Raising IBC Threshold As Rs One Crore Will Apply Only Prospectively . PROVIDED that the Central Government may, by notification, specify the minimum amount of default of higher value which shall not be more than one crore rupees.” 10. applicable from 24.03.2020. The National Company Law Tribuna l (NCLT) ruled that the Central Government’s notification to increase the threshold limit from INR 1 Lakh to INR 1 Crore for initiating insolvency proceedings has prospective effect i.e. Thereafter, the application was moved by the corporate debtor for recall of the admission order passed by the NCLT in view of the central government notification which raised the minimum threshold limit for initiation on insolvency to Rs 1 crore from 1 lakh. The NCLT, vide its order held that nowhere in the Notification is it mentioned that it would apply retrospectively and therefore, the amendment shall be considered prospective in nature and not retrospective. 1 crore will be applicable to applications pending for admission as on the date of notification. 1 crore for initiating insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC). NCLT Notification 2020 – Opening for 167 Steno, Assistant Posts. The National Company Law Tribunal, Chennai Bench (NCLT) has held that the March 24 Notification issued by the Central Government on an enhanced minimum threshold of Rs 1 crore for initiation on insolvency proceedings is prospective in nature. Read Threshold Limit under IBC enhanced to INR 1 Crore . ... (NCLT Chennai- 2/6/20) Yes. In accordance with this an order of admission was passed by the NCLT. NCLT- Image for representational purposes. Section 4 of the Code deals with the minimum threshold default amount and the same has been increased from Rs. Copyright © 2021 Bar and Bench. 1 Crore, from the earlier amount of Rs. The National Company Law Tribunal, Kochi Bench has said that the March Notification which enhanced the minimum threshold of Rs 1 crore for initiation on insolvency proceedings does not save a Corporate Debtor when the default has taken place before the pandemic and the resultant financial crisis (M/s Tharakan Web Innovations Pvt Ltd vs Cyriac Njavally). 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