Section 9 IBC Cannot Be Used to Recover Settlement Interest: NCLAT Delhi

Permali Wallace Pvt. Ltd. Vs Narbada Forest Industries Pvt. Ltd. (NCLAT Delhi) The National Company Law Appellate Tribunal (NCLAT) dismissed the appeal against the order of the National Company Law Tribunal (NCLT), Indore Bench, which had rejected the appellant’s application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The appellant had earlier filed a Section 9 application in 2017. That application was withdrawn after the parties entered into a settlement for payment of the principal operational debt and interest. Pursuant to the settlement, the Corporate Debtor pa...