In the matter of Auram Asset Management Pvt. Ltd. Cp(Ib) 106-ND-2021
Case brief
What is this about?
The Tribunal dismissed an application for initiation of Corporate Insolvency Resolution Process filed under Section 7 of the Insolvency and Bankruptcy Code as not maintainable. The Tribunal held that because the application was filed on 17 May 2020, the amended Section 4 threshold of Rs. 1 crore applied, rendering the claim of Rs. 90 lakhs ineligible.
What did the court decide?
Application IB-106/(ND)/2021 dismissed as not maintainable; no costs awarded.
IN THE NATIONAL COMPANY LAW TRIBUNAL NEW DELHI COURT – VI
ITEM NO. 1
CP(IB):106/ND/2021
IN THE MATTER OF:
M/s. Bagrecha Enterprises Ltd. V/s. M/s. Auram Asset Management Pvt. Ltd. Pvt Ltd
Order under Section 7 of Insolvency and Bankruptcy Code, 2016
Order delivered on 05.07.2023
CORAM:
SHRI BACHU VENKAT BALARAM DAS, HON’BLE MEMBER (JUDICIAL) SHRI RAHUL BHATNAGAR,
HON’BLE MEMBER (TECHNICAL)
ORDER
Order pronounced in open Court vide separate sheets.
Issues for consideration
3 issues framed by the court
Whether a Section 7 application filed on 17.05.2020 is maintainable when the alleged default is Rs. 90 lakhs, below the post-amendment threshold of Rs. 1 crore.
Whether the notification dated 24.03.2020 prescribing a Rs. 1 crore threshold limit applies to applications filed on or after that date regardless of the debt's inception date.
Whether the present application under Section 7 of the IBC violates the amended Section 4 due to insufficient claim amount.
Parties & counsel
- applicant
Bachegra Enterprises Limited
- applicant
Babulal J. Jain
- respondent
M/s Auram Asset Management Ltd
Coram
Case details
As recorded by the court registry
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