The revised default threshold of 1 crore for trigger of corporate insolvency applies prospectively from March 24 and not retrospectively, the National Company Law Appellate Tribunal (NCLAT) has ruled.
This would mean that those applications before March 24 which had debt default of less than 1 crore, but over 1 lakh can be admitted for corporate insolvency process.
Dismissing an appeal (by a majority shareholder and director of Om Boseco Rail Products Ltd) against an order of the NCLT Kolkata bench, which had held that the Ministry of Corporate Affairs (MCA) notification increasing the default limit to 1 crore applied prospectively, the NCLAT also ruled the revised default limit would not apply to those applications under the IBC which …
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