https://www.taxtmi.com/caselaws?id=460622 NCLAT allowed appeal by operational creditor against dismissal of Section 9 application for initiating CIRP. Court held that Section 10A moratorium does not bar proceedings for defaults committed before the COVID-19 period, even if continuing thereafter. Since corporate debtor defaulted from February 2020 (pre-Section 10A), moratorium protection was unavailable. Regarding debt quantum, NCLAT ruled that creditors have discretionary appropriation rights under Section 60 of Indian Contract Act when debtors make unspecified payments. Adjudicating authority erred in finding minimum threshold of Rs 1 crore not met. Matter remanded for fresh consideration. en-us Mon, 11 Sep 2023 00:00:00 +0530 Thu, 06 Feb 2025 18:58:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460622 NCLAT allowed appeal by operational creditor against dismissal of Section 9 application for initiating CIRP. Court held that Section 10A moratorium does not bar proceedings for defaults committed before the COVID-19 period, even if continuing thereafter. Since corporate debtor defaulted from February 2020 (pre-Section 10A), moratorium protection was unavailable. Regarding debt quantum, NCLAT ruled that creditors have discretionary appropriation rights under Section 60 of Indian Contract Act when debtors make unspecified payments. Adjudicating authority erred in finding minimum threshold of Rs 1 crore not met. Matter remanded for fresh consideration. Case-Laws IBC Mon, 11 Sep 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460622