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2022 (3) TMI 278 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of its dues - Operational Creditors - existence of debt and dispute or not - monetary amount involved in the application - HELD THAT:- As per Section 4 of the Code, in order to file application for initiation of Corporate Insolvency Resolution Process the applicant must prove that the default committed by the Corporate Debtor is ₹ 1 Crore or more - Before the publication of notification No. S4/1205 (E) dated 24.3.2020 published by the Ministry Corporate Affairs, Government of India, the threshold limit in Part-II was ₹ 1 lac only, however, to prevent large scale insolvencies due to the financial stress caused by the pandemic, the Government notified the minimum amount of default as ₹ 1 Crore instead of ₹ 1 Lakh. When the aforementioned litmus test in the facts of the present matter it is seen that the fresh Demand Notice was served upon the Corporate Debtor on 22.02.2021 and the application was filed for initiation of Corporate Insolvency Resolution Process on 09.10.2021. The amount of default as claimed by the applicant is less than the threshold limit defined under Section 4 of the Code. Therefore, the present case is not maintainable in terms of provisions of Section 4 of the Code. The present application stand rejected as not maintainable with no order as to costs.
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