Insolvency petition threshold governs maintainability where the enhanced default limit applied to a post-amendment filing.

Delay in filing the section 9 insolvency application was condoned by the NCLT, as the requested relief was within jurisdiction and covered by the limitation exclusion directions and the appellate order relied on by the applicant. However, the application failed on maintainability because the enhanced minimum default threshold of Rs. 1 crore applied to petitions filed on or after 24.03.2020, regardless of when the debt arose. As the petition and demand notice were issued after that date and the alleged default was below the threshold, the section 9 application was dismissed.

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Issues: (i) Whether the delay of 84 days in filing the section 9 application could be condoned; (ii) whether the section 9 application was maintainable in view of the enhanced minimum default threshold of Rs. 1 crore.

Issue (i): Whether the delay of 84 days in filing the section 9 application could be condoned.

Analysis: The application for condonation was considered in the light of the limitation exclusion directions and the appellate order relied upon by the applicant. The Adjudicating Authority held that the relief sought fell within its jurisdiction and could be granted.

Conclusion: The delay of 84 days was condoned in favour of the applicant.

Issue (ii): Whether the section 9 application was maintainable in view of the enhanced minimum default threshold of Rs. 1 crore.

Analysis: The Adjudicating Authority held that the amendment raising the minimum default threshold to Rs. 1 crore applied to applications filed on or after 24.03.2020, even where the debt arose earlier. Since the section 9 petition and demand notice were issued after that date and the alleged default was below the threshold, the application did not satisfy the statutory requirement of maintainability.

Conclusion: The section 9 application was held to be not maintainable and was dismissed.

Final Conclusion: The proceedings ended against the applicant because the insolvency petition failed on the statutory threshold requirement, notwithstanding condonation of delay.

Ratio Decidendi: For a section 9 application under the Insolvency and Bankruptcy Code, the minimum default threshold applicable on the date of filing governs maintainability, and a petition filed after the enhanced threshold came into force cannot proceed if the default is below that threshold.

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