Tribunal Dismisses Application for Failing to Meet Revised Rs. 1 Crore Threshold in Insolvency Proceedings.

The Tribunal ruled that the Application under Section 9 was not maintainable due to the threshold amount requirement, as the claimed amount was below the revised limit of Rs. 1 Crore. Consequently, the Tribunal set aside the interim order restraining the Corporate Debtor and rejected Application No. IB-100/(ND)/2021. The Registry was directed to inform the NCLT to record the application's rejection. No costs were awarded. The judgment underscored the necessity of complying with statutory requirements and thresholds in insolvency proceedings.

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Issues:
1. Maintainability of the Application under Section 9 due to the threshold amount requirement.
2. Validity of the interim order passed by the Adjudicating Authority restraining the Corporate Debtor from disposing of assets.

Analysis:
1. Maintainability of the Application under Section 9:
The appeal was filed against an order restraining the Corporate Debtor from disposing of assets due to an Application under Section 9 claiming a defaulted amount of Rs. 39 Lakhs. The appellant argued that the Application was not maintainable as the claimed amount was below the revised threshold of Rs. 1 Crore set by a notification dated 24.03.2020. The Operational Creditor, however, contended that since a notice under Section 8 was issued earlier, the Application could still be entertained post the threshold revision. The Tribunal noted that the Application was filed after the threshold revision and the claimed amount was below the new limit. It held that the Application was not maintainable as per the revised threshold, and the Adjudicating Authority should have dismissed it instead of passing an interim order.

2. Validity of the Interim Order:
The Tribunal found that since the Application was not maintainable due to the threshold issue, there was no basis for the Adjudicating Authority to proceed further or issue the interim order restraining the Corporate Debtor. The Tribunal emphasized that the Application did not fulfill the statutory requirements under Section 4 of the Code. Consequently, the Tribunal allowed the appeal, set aside the interim order dated 29.09.2021, and rejected Application No. IB-100/(ND)/2021. The Tribunal directed the Registry to inform the National Company Law Tribunal to record the rejection of the Application. No costs were awarded in this matter.

In conclusion, the Tribunal ruled that the Application under Section 9 was not maintainable due to the threshold amount requirement and thus set aside the interim order passed by the Adjudicating Authority. The judgment highlighted the importance of adhering to statutory requirements and thresholds set by law in insolvency proceedings.

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