Omansh Enterprises Limited vs Kayem Food Industries Private Limited
- CitationCompany Appeal (AT) (Insolvency) No.1435 of 2022
Ratio decidendi
The rule this decision rests on
The threshold for an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, as amended by the notification of 24.03.2020 under Section 4, is one crore rupees, and an application under Section 7 for a default below that threshold is not maintainable and cannot be entertained.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
Omansh Enterprises Ltd. ...Appellant
Versus
Kayem Food Industries Pvt. Ltd. ...Respondent
Present: For Appellant: Present but appearance not marked. For Respondents: Mr. Manish Sharma, Mr. Ninad Dogra and Mr. S. Aggarwal, Advocates.
ORDER
06.12.2022: This Appeal has been filed against order dated 29.07.2022.
passed by the Adjudicating Authority by which order Section 7 application
filed by the Appellant has been rejected on the ground of not fulfilling the
threshold limit. An application under Section 7 was filed by the Appellant on
10.06.2021 for an amount of Rs.89,05,000/-. The Adjudicating Authority held
that the threshold having not been fulfilled the application is not maintainable.
2. Learned counsel for the Appellant submits that against the judgment of
this tribunal in 'Jumbo Paper Products vs. Hansraj Agro Fresh Pvt. Ltd.'
Appeal is pending in the Hon'ble Supreme Court where the Appellant has also
filed an Intervention Application.
Cont'd.../ -2-
3. Be that as it may. The law is well settled by several judgments of this
Tribunal that after 24.03.2020 when the threshold was amended under
Section 4, application under Section 7 cannot be entertained where the
threshold is less than one crore. We may also refer to judgment of this
Tribunal in "Prafulla purushottamrao Gadge vs. Narayan Mangal & Anr.,
Company Appeal (AT) (Ins.) No. 498 of 2022" decided on 06.05.2022. We,
thus, do not find any error in the order impugned. Appeal is dismissed.
[Justice Ashok Bhushan] Chairperson
[Dr. Alok Srivastava] Member (Technical)
[Barun Mitra] Member (Technical) Archana/nn
Company Appeal (AT) (Insolvency) No. 1435 of 2022
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