Case Note & Summary
The appeal was filed by Jai Sinter Polycon Pvt. Ltd. against an order dated 20.03.2026, where the Adjudicating Authority rejected Transfer Petition No. 85/KB/2023 on grounds of limitation and failure to meet the threshold of Rs. 1,00,00,000/-. The winding up petition was initially filed in September 2015 for an amount of Rs. 15,82,089/- due to principal and TDS. The application was pending and was later transferred to the NCLT by the Calcutta High Court on 10.07.2023. The Adjudicating Authority noted that the threshold for insolvency applications had been raised by the 2020 amendment to the IBC, which the application did not satisfy. The appellant's counsel argued that the threshold should not apply in this case due to the transfer from the High Court. The Tribunal referenced its previous judgment in Navin Ashokkumar Aswani and Anr. v. Falcon Industries, which established that the threshold must be met for applications under Section 7 or 9. The Supreme Court had dismissed an appeal against this judgment, leaving the question of law open but not altering the threshold requirement. The Tribunal concluded that the Supreme Court's ruling did not provide a different opinion on the threshold issue. The appeal was ultimately dismissed as the application did not meet the necessary threshold for proceeding with insolvency (Paras 2-10).
Headnote
A) Insolvency Law - Threshold Limit - Applicability of Threshold in Transferred Cases - Insolvency and Bankruptcy Code, 2016, Section 7 - The Tribunal held that the threshold limit of Rs. 1,00,00,000/- applies to applications registered under Section 7, and since the amount was less than the threshold, the application was rejected. The court emphasized that the amendment in 2020 aimed to prevent insolvency proceedings for amounts below the threshold. Held that the appeal was dismissed as the application did not meet the required threshold (Paras 2-10).
Issue of Consideration
Whether the threshold limit under the Insolvency and Bankruptcy Code applies to the transfer of a winding up petition from the High Court to NCLT.
Final Decision
The appeal was dismissed as the application did not meet the threshold limit of Rs. 1,00,00,000/- as required under Section 7 of the Insolvency and Bankruptcy Code, 2016.
Law Points
- Threshold limit
- Insolvency proceedings
- Transfer of application
- Limitation period
