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2023 (8) TMI 1378 - AT - Insolvency and BankruptcyRejection of Section 7 application - threshold limit involved in the appeal - deduction of interest amount - application rejected on the ground that Company Petition was filed below the threshold limit as per the Notification issued by the Ministry of Corporate Affairs vide Notification dated 24.03.2020. Whether if the interest payments accrued during the Section 10A period whether the said interest amount is to be deducted while computing the threshold? HELD THAT:- The Section 10 A provides that no application/proceedings under Section 7,9 & 10 is to be initiated for a default which is committed during Section 10A period. What is bar is initiation of proceedings when Corporate Debtor commits default in Section 10 A period. If the default is committed prior to Section 10A period and continues in the Section 10 A period the initiation of proceeding is not barred. In the Judgment of this Tribunal delivered in RAGHAVENDRA JOSHI VERSUS AXIS BANK LIMITED; MR. AMIT CHANDRASHEKAR PODDAR [2023 (8) TMI 1376 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI] it is already held that if default was committed prior to Section 10 A period, Section 10 A shall not be applicable. If the default is committed prior to Section 10 A period and default continues there is no prohibition in initiating proceedings under Section 7 and we are not persuaded to accept the submission of the counsel for the respondent that the liability of interest which accrued during Section 10 A period should be ignored or should not be computed in the amount while finding the threshold. Liability to pay interest which default committed prior to Section 10 A period continues and is not obliviated by Section 10 A - Adjudicating Authority committed error in rejecting the Section 7 application the threshold being complete. The Adjudicating Authority is directed to pass fresh order admitted Section 7 application within 30 days from today - appeal allowed.
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