Threshold limit includes both principal debt and interest under IBC

Prashat Agarwal Vs Vikash Parasrampuria (NCLAT Mumbai)

Held that minimum threshold limit of INR 1 Crore for maintainability of application for CIRP proceedings u/s 9 of IBC includes both principal debt as well as interest on delayed payment.

Facts-

The Operational Creditor is supplier of different types of yarns and has supplied goods to Bombay Rayons Fashions Ltd. (Corporate Debtor). Operation Creditor raised nine invoices between March, 2017 and January, 2020 totally amounting to INR 2,02,26,017/-. Corporate Debtor made payment of some invoices, however, one part invoice and remaining five invoices were unpaid.

The Adjudicating Authority admitted the section 9 application and approved initiation of CIRP along with appointment of IRP. Being aggrieved, Mr. Prashant Aggrawal (member of suspended Board of Corporate Debtor) has preferred present appeal.

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