https://www.taxtmi.com/caselaws?id=310739 The NCLAT allowed an appeal against rejection of a Section 7 application filed below the threshold limit. The Adjudicating Authority had rejected the application by deducting interest amounts that accrued during the Section 10A moratorium period from the total debt calculation. The NCLAT held that where default was committed prior to the Section 10A period and continued thereafter, proceedings under Section 7 were not barred. Interest liability accruing during the moratorium period on pre-existing defaults should be included in threshold calculations as Section 10A does not obliterate continuing liability. The Adjudicating Authority was directed to pass fresh orders admitting the Section 7 application within 30 days. en-us Fri, 18 Aug 2023 00:00:00 +0530 Thu, 09 Nov 2023 20:50:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310739 The NCLAT allowed an appeal against rejection of a Section 7 application filed below the threshold limit. The Adjudicating Authority had rejected the application by deducting interest amounts that accrued during the Section 10A moratorium period from the total debt calculation. The NCLAT held that where default was committed prior to the Section 10A period and continued thereafter, proceedings under Section 7 were not barred. Interest liability accruing during the moratorium period on pre-existing defaults should be included in threshold calculations as Section 10A does not obliterate continuing liability. The Adjudicating Authority was directed to pass fresh orders admitting the Section 7 application within 30 days. Case-Laws Insolvency and Bankruptcy Fri, 18 Aug 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310739