The appellant, Mukesh Kumar, filed a petition under Section 94 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate personal insolvency proceedings, stating an inability to perform a guarantee value of Rs. 5 lakhs. The Adjudicating Authority dismissed this petition via an order dated 17.04.2026, primarily on the grounds that the amount of default (Rs. 5 lakhs) was below the threshold limit prescribed under Section 4 of the IBC.
Mukesh Kumar (appellant) filed a petition under Section 94 of the Insolvency & Bankruptcy Code, 2016 (IBC) for personal insolvency.
The appellant was unable to perform his guarantee value of Rs. 5 lakhs.
The Adjudicating Authority dismissed the petition via an Order dated 17.04.2026.
The dismissal was based on the ground that the default amount of Rs. 5 lakhs was below the threshold limit prescribed under Section 4 of the IBC.
Section 4 of the IBC comes under Part II, Chapter I, and deals with "Insolvency Resolution and Liquidation for Corporate Persons".
Part III of the IBC, Section 78, deals with fresh start, insolvency, and bankruptcy of individuals and partnership firms.
The threshold limit under Section 78 of the IBC is not less than one thousand rupees.
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The Adjudicating…
The NCLAT set aside the Adjudicating…
The appellant, Mukesh Kumar, filed a petition under Section 94 of the Insolvency & Bankruptcy Code, 2016 (IBC) to initiate personal insolvency proceedings, stating an inability to perform a guarantee value of Rs. 5 lakhs. The Adjudicating Authority dismissed this petition via an order dated 17.04.2026, primarily on the grounds that the amount of default (Rs. 5 lakhs) was below the threshold limit prescribed under Section 4 of the IBC.
Mukesh Kumar (appellant) filed a petition under Section 94 of the Insolvency & Bankruptcy Code, 2016 (IBC) for personal insolvency.
The appellant was unable to perform his guarantee value of Rs. 5 lakhs.
The Adjudicating Authority dismissed the petition via an Order dated 17.04.2026.
The dismissal was based on the ground that the default amount of Rs. 5 lakhs was below the threshold limit prescribed under Section 4 of the IBC.
Section 4 of the IBC comes under Part II, Chapter I, and deals with "Insolvency Resolution and Liquidation for Corporate Persons".
Part III of the IBC, Section 78, deals with fresh start, insolvency, and bankruptcy of individuals and partnership firms.
The threshold limit under Section 78 of the IBC is not less than one thousand rupees.
The Adjudicating…
The NCLAT set aside the Adjudicating…