Without adding the principal amount, can CIRP u/s 7 of IBC be initiated only on the defaulted amount of interest accrued on the principal amount (debentures)? – Aadi Buildwell Pvt. Ltd. Vs. Focus Realcon Pvt. Ltd. – NCLT New Delhi Bench Court-II
June 2, 2022
The Adjudicating Authority held that in order to initiate a CIRP u/ s 7 of the IBC, the prime consideration is that there must be existence of debt and only thereafter interest shall be added in the principal debt amount. Only the interest amount claimed by the applicant, in our considered view, does not come under the definition of financial debt. Since the present application is filed only on the ground of interest accrued on the principal amount, and the payment of the principal amount is not due and payable as yet, therefore, the present petition filed under Section 7 of the IBC is not maintainable.