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2020 (10) TMI 547 - AT - Insolvency and BankruptcyEnhancement of minimum amount of default limit from one lakh to 1 crore for initiating CIRP as against small and medium scale industries - whether notification is under section 4 of the Code raising the minimum default limit be applicable to the applications pending for admission? - initiation of CIRP - HELD THAT:- In the instant case on hand, it is crystalline clear that the ‘Corporate Debtor’ had accepted and agreed to make payment of the outstanding debt, as rightly observed by the ‘Adjudicating Authority’ in the impugned order. In short, no iota of any dispute / controversy was raised by the ‘Corporate Debtor’. The 2nd Respondent / Operational Creditor issued a Demand Notice to the ‘Corporate Debtor’ owing to the failure in effecting payment of the outstanding debt. In reality, the Demand Notice was served on the ‘Corporate Debtor’ on 01.08.2019, which is not disputed. For the Demand Notice in issue, the ‘Corporate Debtor’ had not given any reply to the 2nd Respondent / Operational Creditor. Although, adequate opportunities were provided to the ‘Corporate Debtor’ by the ‘Adjudicating Authority’ no endeavor was made to make payment in respect of the outstanding debt. On a careful consideration of respective contentions advanced on either side and considering the facts and circumstances of the instant case in a conspectus fashion holds unhesitatingly that the notification dated 24.03.2020 of the Ministry of Corporate Affairs, Government of India, is prospective in nature and it is not retrospective or retroactive in nature. Further, the said notification will not apply to the pending applications filed before the concerned ‘Adjudicating Authority’ (Authorities), under IBC (waiting for admission), prior to the issuance of the aforesaid notification, as opined by this Tribunal - the conclusion arrived at by the ‘Adjudicating Authority’ in the impugned order to the effect that the notification dated 24.03.2020 of the Ministry of Corporate Affairs, Government of India, shall be considered as prospective and not retrospective and the finding that there was no payment on the side of ‘Corporate Debtor’ after receipt of Demand Notice, no pre-existing dispute also alleged or proved and ultimately admitting the application filed by the 2nd Respondent / Operational Creditor are free from legal infirmities. Appeal dismissed.
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