# In the matter of Arempee Compressors Private Limited IBA-674-2020

> NCLT judgment dated 2021-04-27. Citation: TCN-2021-NCLT-02278. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 27 Apr 2021
- **Citation:** TCN-2021-NCLT-02278
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arempee-compressors-private-limited-iba-674-2020-323c5afd

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, by M/s. Mahaveer Wires Sales Corporation (Operational Creditor) against M/s. Arempee Compressors Private Limited (Corporate Debtor). The application was based on the Corporate Debtor's alleged default on an operational debt of Rs.2,58,581/- with an 18% interest rate from the invoice date.

## Facts

M/s. Mahaveer Wires Sales Corporation, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s. Arempee Compressors Private Limited, the Corporate Debtor. The application was based on the Corporate Debtor's alleged default on an operational debt amounting to Rs.2,58,581/- together with interest at 18% from the date of invoice. The application was filed on 08.10.2020. A crucial fact is that the Central Government had issued a notification on 24.03.2020, raising the minimum default threshold required for initiating insolvency proceedings to Rs.1,00,00,000/- (Rupees One Crore). This notification is relevant because the application was filed after the effective date of the notification, and the claimed default

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## Issues and analysis

### Issue 1: Whether the application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, is …

**Ratio:** An application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is not

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**Reasoning:** The Adjudicating Authority reasoned that the notification dated 24.03.2020 raised the

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**Interpretation:** The interpretation hinges on the applicability of the notification raising the

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**Application:** In this case, the application was filed after the notification raising the

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## Parties

- **Judges:** R. Sucha…; B. Anil…
- **Appellants:** M/s. Mahaveer…
- **Respondents:** M/s. Arempee…

## Timeline

- **2020-03-24 — Notification…**: The Central Government issued a notification raising the minimum default threshold to…
- **2020-10-08 — Application…**: M/s. Mahaveer Wires Sales Corporation filed an application under Section 9 of the IBC…

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