# In the matter of DSC Motor Pvt. Ltd. IBA-611-2020

> NCLT judgment dated 2021-03-30. Citation: TCN-2021-NCLT-02540. Auto Impex filed a petition under Section 9 of the IBC, 2016 against DSC Motors Pvt Ltd. The…

- **Court:** NCLT
- **Order date:** 30 Mar 2021
- **Citation:** TCN-2021-NCLT-02540
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dsc-motor-pvt-ltd-iba-611-2020-4b582d77

## Summary

### Background

Auto Impex filed a petition under Section 9 of the IBC, 2016 against DSC Motors Pvt Ltd. The Tribunal raised a query regarding the amount in default and whether it exceeded Rs. 1,00,00,000/-. The petitioner's counsel stated that although the sum was not in excess of Rs. 1,00,00,000/-, the petition was maintainable. The petition was filed on 22.10.2020, after a notification by the Central Government increased the threshold limit from Rs. 1,00,000/- to Rs. 1,00,00,000/- effective from 24.03.2020.

## Facts

Auto Impex filed a petition against DSC Motors Pvt Ltd under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The total amount in default claimed by Auto Impex was Rs. 11,79,472.92, comprising an outstanding principal of Rs. 10,16,787.00 and interest of Rs. 1,62,685.92. The petition was filed on 22.10.2020. The Central Government had issued a notification effective from 24.03.2020, increasing the threshold limit for initiating insolvency proceedings from Rs. 1,00,000/- to Rs. 1,00,00,000/-. The key fact is that the claimed default amount was less than the revised threshold.

## Issues and analysis

### Issue 1: Whether the Tribunal has the pecuniary jurisdiction to entertain the petition when the amount …

**Ratio:** A tribunal's jurisdiction is limited by the pecuniary limits prescribed by law. If the

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**Reasoning:** The Tribunal reasoned that because the amount claimed by the Petitioner was less than the

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**Interpretation:** The interpretation of Section 4 of the IBC, along with the notification issued

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**Application:** Since the amount claimed (Rs. 11,79,472.92) was less than the revised threshold

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## Parties

- **Judges:** R. VARADH…; Anil Ku…
- **Appellants:** Auto I…
- **Respondents:** DSC Motors…
- **Advocates:** Pranav…

## Timeline

- **2020-03-24 — Notification Effective…**: Central Government notification increasing the threshold limit for initiating insolvency…
- **2020-10-22 — Petition…**: Auto Impex files a petition…

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