Amount of default which has been committed during Section 10A period cannot be clubbed in threshold limit of Rs. 1 Crore under Section 4 of IBC – Plus Corporate Ventures Pvt. Ltd. Vs. Transnational Growth Fund Ltd. – NCLAT New Delhi
NCLAT held that default which has been committed from 16.09.2020 to 28.02.2021, no Application could have ever been filed considering section 10A of IBC. The Appellant’s submission that cumulatively application can be filed taking all amounts, cannot be accepted. The said submission goes contrary to the statutory scheme delineated by Section 10A proviso. When Appellant could not have filed the Application for the default which was committed, the Adjudicating Authority did not commit any error in rejecting the Application as barred by Section 10A of the Code. In so far as the last two default on 31st March, 2021 and 30th April, 2021 is concerned, the Adjudicating Authority has noticed that the total amount of the aforesaid two defaults is only Rs. 37,50,000/- which is below the threshold as provided under Section 4 of the Code.