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

> NCLT judgment dated 2021-04-27. Citation: TCN-2021-NCLT-02287. 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-02287
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arempee-compressors-private-limited-iba-674-2020-ba4002a8

## 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/- along with interest at 18% from the invoice date. The application was filed on 08.10.2020.

## 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 filed on 08.10.2020, alleging a default on an operational debt of Rs.2,58,581/- plus interest at 18% from the invoice date. The Adjudicating Authority noted that a notification dated 24.03.2020 had raised the minimum default threshold to Rs.1,00,00,000/-. The relevance of the date of filing is that it determines whether the new threshold applies. The relevance of the notification is that it changes the maintainability criteria for insolvency applications.

## Issues and analysis

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

**Ratio:** The ratio is that an application under Section 9 of the IBC is not maintainable if the

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**Reasoning:** The Adjudicating Authority reasoned that since the application was filed on 08.10.2020,

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**Interpretation:** The interpretation is that the notification raising the minimum default

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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 — Notificatio…**: Notification issued by the Central Government 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…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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