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No application can be filed after 24.03.2020 regarding an amount where the default is less than Rs.1 Crore – Tharakan Web Innovations Pvt. Ltd. Vs. National Company Law Tribunal – Kerala High Court
February 4, 2022
In the present case, a notice as required under Section 8 had been issued prior to the coming into force of Notification Dated 24.03.2020 and an application under Section 9 was filed on 25.09.2020 i.e. after notification under Section 4 of the IBC. The question that arise for decision that whether the application which relates to a defaulted amount less than Rs.1 crore can be filed after 24.3.2020, on which date notification S.O. 1205(E) dated 24.03.2020 to Section 4 was introduced? Hon'ble High Court holds that the minimum amount of default is statutorily fixed, with power available to the Government to refix, upto a sum of Rs.1 Crore. Once the Government has exercised the said power by issuance of a notification fixing the minimum amount of default as Rs.1 Crore, the Section will have to be read by replacing the words “one lakh rupees” by “rupees one crore”. Once that is the position, the application of Part II itself is taken away with effect from 24.03.2020 as far as defaults less than Rs.1 Crore are concerned and hence no application can be filed after 24.03.2020 regarding an amount where the default is less than Rs.1 Crore.