The present petition challenges an order passed by the NCLT on May 29, 2020, which entertained a petition against VMA Enterprises Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The NCLT appointed an IRP and declared a moratorium under Section 14 of the IBC. The petitioner, Pankaj Aggarwal, is one of the Promoter-Directors of VMA Enterprises Pvt Ltd. The petitioner contends that the company falls under the category of Micro, Small, and Medium Enterprises (MSME) and that the insolvency proceedings would adversely affect the company and its vendors.
Pankaj Aggarwal, a Promoter-Director of VMA Enterprises Pvt Ltd, filed a petition challenging an order by the NCLT dated May 29, 2020. The NCLT had entertained a petition against VMA Enterprises under Section 9 of the IBC, appointed an IRP, and declared a moratorium. Aggarwal contends that VMA Enterprises is an MSME, and the insolvency proceedings would harm the company and its vendors. The NCLT's order was based on a default amount exceeding Rs. 1 lakh. However, a notification dated March 24, 2020, increased the minimum default amount for initiating insolvency proceedings to Rs. 1 crore to protect MSMEs during the lockdown. The petitioner claims the dues of Respondent No. 2 would at best be approximately Rs. 10 lakhs.
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Notification issued changing the minimum…
NCLT passed an order entertaining a petition…
The present petition challenges an order passed by the NCLT on May 29, 2020, which entertained a petition against VMA Enterprises Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The NCLT appointed an IRP and declared a moratorium under Section 14 of the IBC. The petitioner, Pankaj Aggarwal, is one of the Promoter-Directors of VMA Enterprises Pvt Ltd. The petitioner contends that the company falls under the category of Micro, Small, and Medium Enterprises (MSME) and that the insolvency proceedings would adversely affect the company and its vendors.
Pankaj Aggarwal, a Promoter-Director of VMA Enterprises Pvt Ltd, filed a petition challenging an order by the NCLT dated May 29, 2020. The NCLT had entertained a petition against VMA Enterprises under Section 9 of the IBC, appointed an IRP, and declared a moratorium. Aggarwal contends that VMA Enterprises is an MSME, and the insolvency proceedings would harm the company and its vendors. The NCLT's order was based on a default amount exceeding Rs. 1 lakh. However, a notification dated March 24, 2020, increased the minimum default amount for initiating insolvency proceedings to Rs. 1 crore to protect MSMEs during the lockdown. The petitioner claims the dues of Respondent No. 2 would at best be approximately Rs. 10 lakhs.
Notification issued changing the minimum…
NCLT passed an order entertaining a petition…