Application of this Part
| Topics | |
| 1. Elements required for initiation of CIRP. | |
| 2. If default exceeds the threshold limit, insolvency can be initiated. | |
| 3. The minimum default amount required to initiate insolvency has been raised to Rs. 1 crore w.e.f. 24th March 2020. | |
| 4. Exclusions mentioned in section 10A must be kept in view. | |
| 5. Applications under Section 9 filed prior to 24th March 2020 shall not be affected by the Notification dated 24th March 2020. However, applications filed after 24th March 2020 will prerequisite new threshold limit. | |
| 6. The threshold limit existing on the date of filing of the petition will be applicable. | |
| 7. If interest on delayed payment is stipulated the same will entitle for 'right to payment' (Section 3(6) IBC) and therefore will form part of 'debt' (Section 3(11) IBC) and if in totality exceeding the threshold limit, the application will be maintainable. | |
| 8. Misuse of the provisions of IBC to resolve a contractual dispute which is reproachable. | |
| 9. An invoice if not been signed by both parties is an unilateral document and interest cannot be claimed. | |
| 10. A ‘unilateral document’ and such interest cannot be recovered | |
| 11. When a Winding Up Petition gets transferred from High Court to NCLT it transforms in to proceeding u/s 7 or 9 of IBC and thus, threshold limit u/s 4 must be complied. | |
| 12. The date of sending the Demand Notice under Section 8 of IBC, has no relevance regarding mandatory threshold limit of Rs. 1 Crore as defined under Section 4(1) of IBC |