CIRP Threshold Not Met Under Section 9 Because Interest Could Not Be Added to Principal

Jai Narain Fabtech Pvt. Ltd. Vs Cheema Spintex Ltd. (NCLAT Delhi)

This appeal arose from an order dated 20 September 2023 dismissing an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by the appellant–operational creditor for recovery of Rs. 1,41,57,817/-, which included interest at 18% per annum from the due date. The National Company Law Tribunal (NCLT) rejected the petition on the grounds that it was filed beyond the period of limitation and did not meet the statutory minimum threshold of Rs. 1 crore when interest was excluded. According to the ap

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