Even if debt was due prior to 24.03.2020 and demand notice was sent prior to 24.03.2020, a petition u/s 9 of IBC cannot be filed against a Corporate Debtor if the amount of unpaid debt is less than the threshold limit of Rs. 1 crore as stipulated under section 4 of the Code, 2016 – M/s. M. M. Metacraft Pvt. Ltd. Vs. M/s. R.M. Controls Pvt. Ltd. – NCLT New Delhi Bench Court-IV
The Adjudicating Authority held that the date of filing the petition has to be considered to determine the applicability of threshold limit of Rs. 1 Crore as stipulated under section 4 of the Code, 2016 and the date of issue of demand notice or date of default are irrelevant in determining the applicability of threshold limit of Rs. 1 Crore as stipulated under section 4 of the Code, 2016. The intent of legislation to fix the threshold limit was to save the Companies from being rotted to NCLT for initiation of CIRP proceedings, due to COIVD-19 effect. The said notification was always prospective in nature but having retrospective also. In the present application the Operational Creditor demanded outstanding operational debt amounting Rs.17,91,274/- and the said amount is much below the threshold limit of Rs. 1 crore as envisaged under section 4 of the Code, 2016 as the date of the filing of the instant petition i.e., 18.09.2020 has to be considered and not the date of the demand notice i.e. 04.02.2020 to be considered.
