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2020 (6) TMI 617 - HC - Insolvency and BankruptcyMaintainability of petition - NCLT has entertained a petition against the Company M/s. VMA Enterprises Pvt Ltd. of which the Petitioner is one of the Promoter-Directors, under Section 9 of the Insolvency and Bankruptcy Code, 2016 - scope of Micro, Small and Medium Enterprise (MSME) - HELD THAT:- It is clear that the purpose of increasing the jurisdiction of the NCLT to ₹ 1 crore was to ensure that MSMEs are not inflicted with sudden insolvency proceedings, as they may have faced a set-back to their businesses during the lockdown period. The NCLT’s order records that the default amount is to the tune of ₹ 1 lakh, and hence the petition under Section 9 is being entertained. The notification dated 24th March 2020 has changed the `minimum amount of default’ from one lakh rupees to one crore rupees in respect of `Insolvency Resolution and Liquidation for corporate persons’ in Part II of the Code. The proceedings in the present case have been commenced under Section 9 of the IBC which is in Part II of the Code. The purpose of the notification was to ensure that Small and Medium Enterprises viz., SMEs and MSMEs are not subjected to Insolvency proceedings during the lockdown or immediately thereafter. The present writ petition accordingly deserves consideration. This is an error by the NCLT, as the notification dated 24th March 2020 was clearly applicable. Subject to the Petitioner depositing an amount of ₹ 10 lakhs with the ld. Registrar General of this Court, the order of the NCLT dated 29th May, 2020 shall remain stayed till the next date of hearing. List on 13th August, 2020.
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