Operational debt doesn’t include interest unless payable in terms of any agreement

Paresh K. Mehta Investment Pvt. Ltd. Vs State Bank of India & Anr. (NCLAT Delhi)

NCLAT Delhi held that operational debt in terms of Insolvency and Bankruptcy Code doesn’t include interest unless interest is payable in terms of any agreement among parties. Here, since there is neither any agreement nor any clause for interest in invoice. Accordingly, operational creditor is not entitled for interest.

Facts- This Appeal by a Suspended Director of the Corporate Debtor – M/s MKM Diamonds Pvt. Ltd. has been filed challenging the order dated 01.09.2023 pas

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