Noslar International Limited In ... vs Sigma Cartons Private Limited
- CitationComp. App. (AT) (Ins) No. 2241 of 2024
Ratio decidendi
The rule this decision rests on
The threshold for an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is to be determined as on the date on which the application is filed, and not on the date of any earlier event such as the commencement of liquidation or the issue of a prior notice. A delay in obtaining the requisite approvals from the Stakeholders Consultation Committee and the Adjudicating Authority before filing does not entitle the applicant to relaxation of the threshold; where the application is filed after the notification raising the threshold came into effect and the claim falls below the revised threshold, the application is liable to be rejected on that ground.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
IN THE MATTER OF: Noslar International Ltd. ...Appellants (In Liquidation) Through Sajeve Bhushan Deora, Liquidator Versus Sigma Cartons Pvt. Ltd. ...Respondents
Present: For Applicant : Mr. Harsh Gurbani, Advocate. For Respondents :
ORDER
(Hybrid Mode)
10.02.2025: Heard counsel for the appellant.
This appeal has been filed against the order dated 10.09.2024 by which
Adjudicating Authority has rejected Section 9 application filed by the
appellant on the ground of threshold. It is submitted on behalf of the
appellant that the company was in liquidation and the liquidation order was
passed on 28.02.2020 and the time was taken in obtaining the approval of
SCC for filing the appeal and the company petition could be filed only in the
year 2023.
2. Ld. Counsel for the appellant submits that the notification for increase
in the threshold was issued on 24.03.2020 which need not be applied in the
present case due to the fact that company was in liquidation and Form-3 had
already been issued on 27.01.2020.
3. We have considered the submissions advanced on behalf of the
appellant. It is settled law that the threshold has to be determined on the date of filing of the application. In the present case, it is admitted that the
application has been filed in the year 2023 that is much subsequent to
24.03.2020. The fact that the company was in liquidation on 28.02.2020 and
the time was taken for obtaining permission of the SCC and NCLT cannot be
a ground to relax of threshold in the facts of present case. The date of filing of
the application is determinative of the threshold in the present case which
having filed subsequent to 24.03.2020 and the amount claimed only being
Rs.30,84,782/-, the Adjudicating Authority has rightly rejected the
application on the ground of threshold. We do not find any error in the order
passed by Adjudicating Authority.
Hence, Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Barun Mitra] Member (Technical)
[Arun Baroka] Member (Technical) harleen/NN
2 of 2 Comp. App. (AT) (Ins) No. 2241 of 2024
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