Enhanced IBC default threshold applies to section 9 applications filed after 24.03.2020, regardless of earlier debt default.

The enhanced minimum default threshold under section 4 of the Insolvency and Bankruptcy Code, 2016, introduced by Notification No. S.O. 1205(E) dated 24.03.2020, applies to section 9 applications filed on or after that date even if the underlying debt default arose earlier. A prior decision concerning an application filed before the notification was therefore not applicable. On that basis, the one crore rupee threshold governed the section 9 application filed on 13.09.2020, and the appeal was not liable to be admitted.

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Issues: Whether the notification enhancing the minimum default threshold under section 4 of the Insolvency and Bankruptcy Code, 2016 applies to a section 9 application filed after 24.03.2020 even if the underlying debt default arose earlier.

Analysis: The minimum amount of default under section 4 was enhanced by Notification No. S.O. 1205(E) dated 24.03.2020. The appeal did not involve an application filed before that date. The earlier decision relied upon by the appellant concerned a section 9 application filed prior to the notification and therefore did not govern the present facts. The notification was treated as applicable to applications filed on or after 24.03.2020, irrespective of the date on which the debt had arisen.

Conclusion: The enhanced threshold of one crore rupees applied to the section 9 application filed on 13.09.2020, and the appeal was not liable to be admitted.

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