Registrar, NCLT cannot determine the applicability of Notification on increased IBC threshold: Delhi High Court

The Delhi High Court has ruled that the issue of applicability of the March 24 Notification, which has increased the pecuniary threshold under Insolvency & Bankruptcy Code to Rs 1 crore, to a particular case cannot be determined by the Registrar of NCLT in his administrative capacity. (Skillstech Services Pvt Ltd vs Registrar, NCLT, New Delhi & Anr).The question of jurisdiction has to be judicially determined by the appropriate NCLT Bench, a Single Judge Bench of Justice Prathiba M Singh has said. .The Court was dealing with a petition seeking a listing of a Section 9 IBC petition before the appropriate bench of the NCLT. It was the petitioner's grievance that the Registrar of the NCLT did not list the matter before the appropriate bench on the ground that the threshold of the pecuniary jurisdiction of the NCLT had been increased from Rs1 lakh to Rs 1 crore..The counsel for the petitioner argued that the question as to whether the NCLT had the pecuniary jurisdiction could not be decided by the Registrar and the same ought to be looked into and determined by an appropriate bench of the NCLT, after appreciating the fact situation involved..Reliance was placed on an NCLT Kochi order holding that if disputes had arisen prior to the outbreak of the pandemic, the notification would not apply as it could not be made applicable retrospectively..In response, the Central government counsel said that the NCLT order being relied upon by the Petitioner had been stayed by the Kerala High Court..In view of the submissions made by the parties, the Court opined that it was for the appropriate bench of the NCLT to judicially determine the issue and decide whether notice was liable to be issued in the matter or not. .The Court said, ."This court is of the opinion that the question as to whether the NCLT has jurisdiction to entertain a particular case or not cannot be determined by the Registrar in the administrative capacity. The Registrar would have to place the matter before the appropriate bench of the NCLT, for the said question to be judicially determined. The appropriate bench of the NCLT would have to then, take a considered view as to whether notice is liable to be issued in the matter or not.".It added, ."The question as to whether the notification dated 24th March, 2020 applies to a particular petition that has been filed prior to the said notification or not is also a question to be determined by the Bench of the NCLT and not by the Registrar of the Tribunal.".Accordingly, the Court directed that the petition under section 9 IBC be placed by the Registrar, NCLT before an appropriate bench for proceeding further in accordance with law. .Advocate Swaroop George appeared for the Petitioner. Standing Counsel. Harish Vaidyanathan appeared for Centre..Read the order: