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The Single Judge Bench of the Delhi High Court has stated their position on a matter concerning the applicability of a notification dated 4th March 2020 with respect to the Insolvency and Bankruptcy Code 2016 (Skillstech Services Pvt Ltd v. Registrar, NCLT, New Delhi & Anr). The Single Judge Bench, of Justice Pratibha M Singh, has expressed her opinion on whether the Registrar of the National Company Law Tribunal (NCLT) can, in their administrative capacity, determine whether a matter meets the pecuniary jurisdictional requirements of the Tribunal.
The Notification issued by the Government of India on 4th March 2020 with respect to the Insolvency and Bankruptcy Code 2016 had increased the threshold of default required to initiate the insolvency proceedings from 1 lac rupees to 1 crore rupees under Section 4 of the Act. The Petitioner stated that when they had submitted a plea before the NCLT, the Registrar had not listed the matter for hearing before an appropriate Bench of the NCLT.
The legal counsel of the petitioner, Advocate Swaroop George, alleged that the Registrar of the NCLT was wrong in not listing the petition brought by them in front of the NCLT. The petitioner's legal counsel submitted that only the appropriate Bench of the NCLT could decide whether the matter fell short of fulfilling the pecuniary requirements of the Tribunal. The Court opined that only the appropriate Bench of the NCLT can judicially decide on the question of jurisdiction.
The Court stated that the Registrar of the NCLT, in their administrative capacity, cannot determine whether a matter is eligible for hearing by the Court or not. The question on whether there will be retrospective applicability of the Notification dated 4th March 2020 will also be decided on by the appropriate Bench of the NCLT. The Court directed the insolvency petition brought up by the petitioner to be listed for hearing in front of the appropriate Bench of the NCLT.
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