Case Law Details
Vishnu Oil Mill Private Ltd Vs Union of India (Rajasthan High Court)
Held that application u/s 7 for triggering CIRP may be initiated by a financial creditor either individually or jointly with other financial creditors with total minimum threshold for initiation of CIRP being fixed at INR 1 Crore.
Facts-
The petitioner has approached this Court through this writ petition seeking to assail the validity of Section 7 of the Insolvency and Bankruptcy Code, 2016 and so also the order dated 22.12.2021 passed by the National Company Law Tribunal, Jaipur Bench against the petitioner. Section 7, the validity whereof assailed in the instant writ petition.
Petitioner stated that limit for initiation of CIRP by a financial creditor either by himself or jointly with other financial creditor is INR 1 Crore. In the present case, the private respondents Nos.4 to 7 do not claim individual debt or default of Rs.1 crore against the petitioner but despite that, by unjustly invoking the clause of joint application by financial creditors under Section 7 of the IBC, CIRP has been initiated against the petitioner which is an MSME.
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