Case Law Details
Pankaj Aggarwal Vs Union of India & Ors. (Delhi High Court)
FACTS
The present petition has been filed by Mr. Pankaj Aggarwal (hereinafter referred as the Petitioner) challenging the order passed by the NCLT on 29.05.2020. The Petitioner is one of the Promoter-Directors of the Company M/s VMA Enterprises Pvt. Ltd. (hereinafter referred as the Petitioner company) against which Corporate Insolvency Resolution Process (CIRP) was initiated by Panoli Intermediates (India) Pvt. Ltd. under section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
An order was passed by NCLT against the Petitioner Company on 29.05.2020 for initiation of the CIRP and also the moratorium was declared since the defaulted amount was more than Rs. 1 Lakh.
The Petitioner Company falls under the category of Micro, Small & Medium Enterprise (MSMEs) and as per the Petitioner if CIRP is initiated, the Petitioner Company would go out of business overnight. Also, the NCLT did not consider the fact that from 24.03.2020 onwards, the pecuniary limit of the applications to be filed in NCLT was increased to Rs. 1 Crore from Rs. 1 Lakh.
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