Khushbu Dye Chem Private Limited Vs Chemical Suppliers India Private Limited (NCLAT Delhi)
NCLAT Delhi held that interest cannot be termed as operational debt as defined under section 5(21) of the Insolvency and Bankruptcy Code and hence interest cannot be included in the claims filed under section 9 of the Code.
Facts- The present Appeal has been filed u/s. 61 of the Insolvency and Bankruptcy Code, 2016 (‘Code’) for seeking an order to quash/set aside the order dated 17.01.2024 (‘Impugned Order’) passed by the Adjudicating Authority titled ‘Khushbu Dye Chem Private Limited versus Chemical Suppliers India Private Limited’, wherein the Adjudicating Authority dismissed the aforesaid Company Petition filed u/s 9 of the Code by concluding that the debt amount is less than the threshold value of Rs. 1,00,00,000/- as required u/s 4 of the Code for initiating the Corporate Insolvency Resolution Process (“CIRP”) against the Respondent and that there are pre-existing disputes in relation to the debt amount of Rs.1,82,54,891/- plus interest of Rs.42,72,193/-.
Conclusion- Held that ‘interest’ is specifically mentioned in the definition of financial debt but no such mention is available in the definition of operation Thus, we can conclude that the Appellant’s inclusion of interest in the claimed amount is untenable as interest cannot be termed as operational debt under the Code. Thus, held that we are in agreement with the submissions made by the Respondent that the interest in the present facts of case cannot be included in the claims filed under Section 9 of the Code.
