# In the matter of Krisenter Impex Pvt. Limited IBA-35-KOB/2020

> NCLT judgment dated 2021-02-26. Citation: TCN-2021-NCLT-02905. The case involves an application filed by M/s Al Sadiq Sweets, an operational creditor, against…

- **Court:** NCLT
- **Order date:** 26 Feb 2021
- **Citation:** TCN-2021-NCLT-02905
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/krisenter-impex-pvt-limited-iba-35-kob2020-5c10bd83

## Summary

### Background

The case involves an application filed by M/s Al Sadiq Sweets, an operational creditor, against M/s Krisenter Impex Pvt. Limited, the corporate debtor, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational creditor claimed a default of USD $1,13,500/- as of 31.08.2020, with the date of default mentioned as 03.01.2020. The corporate debtor challenged the maintainability of the petition, citing the increased threshold for initiating CIRP under Section 4 of the IBC and the applicability of Section 10A due to the COVID-19 pandemic.

## Facts

M/s Al Sadiq Sweets, an operational creditor based in Qatar, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Krisenter Impex Pvt. Limited, a corporate debtor in India. The application was filed on 16.09.2020, claiming a default of USD $1,13,500/- as of 31.08.2020, with the date of default being 03.01.2020. The operational creditor alleged that the corporate debtor failed to supply Indian Cashew Kernels as agreed, despite receiving an advance payment of USD $1,00,000. The corporate debtor acknowledged the debt but delayed refunding the money. The operational creditor issued a demand notice on 01.08.2020. The corporate debtor challenged the maintainability of the application, arguing that it did not meet the minimum default

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## Issues and analysis

### Issue 1: Whether the notification under Section 4 of the Code raising the minimum default limit is …

**Ratio:** The Central Government is delegated with a power to quantify the amount of default at any

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**Reasoning:** The Tribunal reasoned that the notification dated 24.03.2020, which increased the minimum

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**Interpretation:** The interpretation of Section 4 of the IBC and the related notification hinges

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**Application:** In this case, the Tribunal applied the principle of prospective application,

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## Parties

- **Judges:** Ashok Kumar…
- **Appellants:** M/s Al Sadiq…
- **Respondents:** M/s Krisenter…

## Timeline

- **2018-09-01 — Purchase Order…**: Purchase order issued through various…
- **2019-11-25 — Purchase Orde…**: Purchase order placed…

## 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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