Dismissal of Insolvency Application due to Pecuniary Limit under Section 9

The Tribunal dismissed the application under Section 9 of the Insolvency and Bankruptcy Code, citing that the pecuniary threshold limit of Rs. 1 crore applied, rendering the petition not maintainable. The Tribunal allowed condonation of the 84-day delay in filing the petition, emphasizing jurisdiction and precedence. The respondent company did not reply, leading the Tribunal to consider the application and provisions of the Code. The Tribunal's decision was based on the retrospective and prospective application of the threshold limit, ultimately resulting in the dismissal of the petition.

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Issues:
- Application under section 9 of the Insolvency and Bankruptcy Code for initiation of Corporate Insolvency Resolution Process.
- Condonation of delay in filing the petition.
- Maintainability of the petition based on pecuniary threshold limit.

Analysis:
1. Application under Section 9 of the Insolvency and Bankruptcy Code: The applicant, an operational creditor, filed a petition seeking initiation of Corporate Insolvency Resolution Process against the respondent company, claiming unpaid operational debt. The applicant provided details of the transactions and invoices generated in favor of the corporate debtor. The respondent company did not file a reply before the Adjudicating Authority. The Tribunal considered the application and the provisions of the Code to proceed with the matter.

2. Condonation of Delay: The applicant sought condonation of an 84-day delay in filing the Section 9 petition. The Tribunal examined the delay under Section 5 of the Limitation Act, 1965, and Section 238A of the IBC, 2016. Referring to relevant judgments, including those of the Supreme Court and the National Company Law Appellate Tribunal, the Tribunal allowed the condonation of the delay, citing jurisdiction and precedence.

3. Maintainability based on Pecuniary Threshold Limit: The Tribunal delved into the issue of maintainability of the petition concerning the pecuniary threshold limit. Citing judgments and notifications, including the MCA notification dated 24.3.2020, the Tribunal analyzed the retrospective and prospective application of the threshold limit of Rs. 1 crore for filing applications under Section 7 or 9 of the IBC. Referring to the NCLAT and High Court judgments, the Tribunal concluded that the pecuniary threshold limit applied to applications filed on or after 24.3.2020, rendering the present application not maintainable due to falling below the threshold.

4. Final Decision: Consequently, the Tribunal dismissed the present application under Section 9 of the Code, emphasizing that the pecuniary threshold limit of Rs. 1 crore applied to the case, making the application not maintainable. The order was served to the parties, and the file was consigned to the record room.

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