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of <h1>High Court upholds NCLT's order, emphasizes Notification impact on default amount. Liberty granted to appeal or seek review.</h1> <h3>Arrowline Organic Products Pvt. Ltd. Versus Rockwell Industries Ltd.</h3> Arrowline Organic Products Pvt. Ltd. Versus Rockwell Industries Ltd. - TMI Issues:1. Maintainability of the civil revision petition against the order of the National Company Law Tribunal.2. Interpretation of the Notification dated 24.3.2020 specifying the minimum default amount under the Insolvency and Bankruptcy Code, 2016.Analysis:1. The petitioner, a Corporate Debtor, challenged the order of the National Company Law Tribunal, Chennai Bench, dated 05.05.2020, which admitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The petitioner argued that the Notification dated 24.3.2020, setting one Crore rupees as the minimum default amount, should have been considered by the Tribunal. The High Court noted that the Tribunal did not address this issue. Consequently, the petitioner was granted the liberty to appeal the order before the National Company Law Appellate Tribunal or file a review application before the NCLT itself.2. The High Court declined to entertain the civil revision petition, emphasizing that the issue regarding the impact of the Notification dated 24.3.2020 on the present case should be first adjudicated by the Tribunal. The Court stated that abstract questions cannot be decided in writ jurisdiction without the Tribunal's consideration. Therefore, the petition was dismissed with the petitioner having the freedom to raise the issue before the appropriate Tribunal. The Court highlighted the dependency of the amendment Notification on the case's facts, indicating the need for a thorough examination at the lower level before a decision at the High Court level.In conclusion, the High Court's judgment focused on the maintainability of the civil revision petition against the NCLT's order and the necessity for the Tribunal to address the impact of the Notification specifying the minimum default amount. The Court allowed the petitioner to pursue remedies before the relevant Tribunals, highlighting the importance of factual adjudication before abstract legal questions can be decided at the higher court level.
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