NCLT restored the original petition where default amount reduced below to Rs. 1 cr. due to violation in settlement arrived before 24.03.2020 – M/s. Sakthi Containers Pvt. Ltd. Vs. M/s. Bnazrum Agro Exports Ltd. – NCLT Chennai Bench
The Adjudicating Authority allow the restore application referring NCLAT judgment Sree Bhadra Parks and Resorts Vs Sri Ramani Resorts and Hotels (2021) ibclaw.in 180 NCLAT and SC judgment in ESS Investments vs Lokhandwala Infrastructure [2020] ibclaw.in 05 SC and held that the prayer of the operational creditor becomes pertinent in light of the fact that the minimum threshold of default under section 4 of IBC 2016 has been raised from Rupees One Lakh to Rupees One Crore vide Notification F. No. 30/09/2020 dated 24th March, 2020. Further, if we did not revive the IBA, it will give further room to the Corporate Debtor to violate settlement arrived before 24.03.2020, they defeat the very spirit of IBC. Hence, if terms of compromise are not honoured, there the IBA shall be reverted to its original position and the Adjudicating Authority shall take up the same for Adjudication.
