Decor Paper Mills Ltd. Vs Mahashakti Plasto Pvt. Ltd. (NCLAT Delhi)
NCLT Delhi held that admissible of application under section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) not justified since invoices covered under section 10A has to be excluded and accordingly amount claimed will be less than threshold limit of Rs. 1 Crore.
Facts- This Appeal has been filed against order passed by the Adjudicating Authority dated 06.09.2024 rejecting Section 9 application filed by the Appellant. The Adjudicating Authority by the impugned order has held that the amount of invoices covered under Section 10A has to be excluded and there is no agreement for interest and the amount which is claimed is reduced to Rs.92,09,732/-, which is less than the threshold limit of Rs. 1 Crore and Section 9 application cannot be admitted. Aggrieved by the impugned order this appeal has been filed.
Conclusion- Held that there was running account, the invoices which fall within the 1 0A period has to be excluded. The acknowledgment of debt for invoices during 10A period cannot permit the Operational Creditor to maintain the application and for invoices which are under 10A period has to be excluded since Section 10A clearly bars recovery of amount for default occurred during 10A period which is statutory scheme for a purpose and object. The statutory scheme which is reflected in Section 10A cannot be allowed to be defeated, even by claim of Appellant that amount claimed being running account or any action of the Corporate Debtor of confirmation of debt.
