The use of the term ‘Default’ in Section 10A of IBC makes it clear that irrespective of the fact that the debt may or may not have occurred during the excluded period, but if the default in payment of such debt arose during the said period, then no proceeding for CIRP can ever be initiated against the Corporate Debtor for the said default occurring during the said period – Oncquest Laboratories Pvt. Ltd. Vs. Sanya GIC Imaging Pvt. Ltd. – NCLT New Delhi Bench Court-V
The use of the term ‘Default’ in Section 10A makes it clear that irrespective of the fact that the debt may or may not have occurred during the excluded period, but if the default in payment of such debt arose during the said period, then no proceeding for CIRP can ever be initiated against the Corporate Debtor for the said default occurring during the said period. In addition to that, admittedly, the debt claimed by the Operational Creditor worth Rs. 1,05,43,850/- (Rupees One Crore Five Lacs Forty-Three Thousand Eight Hundred Fifty) is inclusive of the invoices raised during the excluded period and if the invoices raised during the excluded period are removed from calculation of the debt amount, the claim of the Operational Creditor would not meet the threshold limit of Rs. 1 Crore as required by Section 4 of the Code.