As there being a default of debt of more than Rs. 1 Lakh and, in absence of any pre-existence of dispute, we hold that the Adjudicating Authority has no jurisdiction to reject the application under Section 9 only on the ground that the Corporate Debtor is MSME – M/s. Bannari Amman Spinning Mills Ltd. Vs. M/s. My Choice Knit & Apparels Pvt. Ltd. – NCLAT New Delhi
In the aforesaid circumstances, as there being a default of debt of more than Rs. 1 Lakh and, in absence of any pre-existence of dispute, we hold that the Adjudicating Authority has no jurisdiction to reject the application under Section 9 only on the ground that the ‘Corporate Debtor’ is MSME. There is no such provision under the Act which stipulates that a Company (‘Corporate Debtor’) which is MSME does not come within the purview of ‘I&B Code’ or application under Sections 7 or 9 or 10 is not maintainable.
