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 passed by National Company Law Tribunal (“NCLT”), Mumbai Bench, Court-II admitting Section 9 application filed by the State Bank of India (“SBI”) (Respondent No.1 herein).
Conclusion- Tribunal in Krishna Enterprises Gammon India Ltd. [2018 SCC OnLine NCLAT 360.] held that “debt” in terms of the Code does not include interest, unless payable in terms of any agreement among parties.
In the present case, the Invoices are on the record, which have been filed along with the additional affidavit by the Petitioner itself, which are part of the record, in both the Invoices dated 03.10.2016 and 05.10.2016, there is no clause in the Invoices for payment of interest. Thus, the present is a case where neither there was an agreement between the parties for payment of interest, nor the Invoices, which have been issued by Eurostar Diamnond Traders N.V. contained any clause for the interest. We, thus, are of the view that the Operational Creditor was not entitled to add any interest in the operational debt.
