Campbell Advertising Pvt. Ltd. Vs Vipul Ltd. (NCLAT Delhi)
The National Company Law Appellate Tribunal, Delhi examined appeals filed by an Operational Creditor challenging the rejection of restoration applications seeking revival of insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code. The appeals arose from an order of the Adjudicating Authority (NCLT, New Delhi) which had earlier dismissed the Section 7 application after recording that the Corporate Debtor had paid the entire amount claimed in Part IV of the application, including principal and interest. The Adjudicating Authority noted that no default subsisted as on the date of consideration and held that, in the absence of insolvency, commencement of the Corporate Insolvency Resolution Process (CIRP) was unwarranted.
The Adjudicating Authority also recorded that while there was a dispute regarding pendente lite interest, the Corporate Debtor agreed to pay interest at 8% per annum for the period during which the application remained pending. Subsequent to the dismissal, the Corporate Debtor paid an amount of ₹46,93,907 towards pendente lite interest, for which an acknowledgment of receipt was issued. When restoration applications were later filed seeking revival of the Section 7 proceedings on the ground that the entire pendente lite interest had not been paid, the Adjudicating Authority rejected the applications, noting that the Part IV dues stood fully discharged and interest had also been paid.
