Janus GBAC Limited Vs Beloorbayir Biotech Limited (NCLT Bengaluru)
NCLT Bengaluru held that interest cannot be raised unilaterally in the Insolvency petition, without prior intimation to Corporate Debtor. Accordingly, petition dismissed as alleged amount not sufficient enough to maintain petition u/s. 4 of the Insolvency and Bankruptcy Code.
Facts- The present Company petition is filed on 27/07/2023, under section 9 of the Insolvency and Bankruptcy Code, 2016, r/w. Rule 6 of the I&B (Application to Adjudicating Authority) Rules 2016, by JANUS GBAC LIMITED. (Operational Creditor/Petitioner) inter alia seeking to initiate Corporate Insolvency Resolution Process against Beloorbayir Biotech Limited (Corporate Debtor/Respondent) on the ground that the Corporate Debtor has committed a default for a total outstanding amount of USD 140,513.09.
Conclusion- Held that for any creditor to claim the interest in the default amount the same should be reflected in either the agreement or the invoices raised against the Corporate Debtor. The interest cannot be raised unilaterally in the Insolvency petition, without prior intimation to the Respondent.
It is clear that the interest is only levied to meet the threshold requirements as per Section 4 of the IBC Code. If the interest amount is excluded, then the principal amount of alleged default is not sufficient enough to maintain this petition u/s 4 of the Code and hence, on this ground alone, the instant Petition is liable to be dismissed.
