PANKAJ AGGARWAL Vs. UNION OF INDIA AND ORS

JUDGEMENT

(1.) This hearing has been held by video-conferencing.

(2.) The present petition has been filed challenging the impugned order passed by the NCLT dated 29th May, 2020 by which the NCLT has entertained a petition against the Company M/s. VMA Enterprises Pvt Ltd. of which the Petitioner is one of the Promoter-Directors, under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The NCLT has vide the said order appointed an IRP and declared moratorium under Section 14 of the IBC.

(3.) The first contention of Mr. Prabhat Kumar, ld. counsel appearing for the Petitioner is that the Company falls within the category of Micro, Small and Medium Enterprise (MSME), with more than 20 employees and at least 50 vendors would be affected if the insolvency proceeding continue against the Petitioner. The Petitioner would completely out of business overnight. The NCLT has failed to appreciate that w.e.f. 24th March, 2020, the jurisdiction of the NCLT has been increased to Rs 1 crore. However, in the operative portion of the NCLT's order, the NCLT proceeds on the basis that the defaulted amount is more than Rs.1 lakh, and has exercised jurisdiction.