IBC Notification on enhanced minimum threshold of Rs 1 crore not for cases where default happens before pandemic: NCLT

The NCLT was dealing with an application by a Corporate Debtor seeking a declaration that insolvency plea against it was not maintainable in light of the March 24 Notification.
IBC Notification on enhanced minimum threshold of Rs 1 crore not for cases where default happens before pandemic: NCLT
NCLT- Image for representational purposes

The National Company Law Tribunal, Kochi Bench has said that the March Notification which enhanced the minimum threshold of Rs 1 crore for initiation on insolvency proceedings does not save a Corporate Debtor when the default has taken place before the pandemic and the resultant financial crisis (M/s Tharakan Web Innovations Pvt Ltd vs Cyriac Njavally).

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