NCLAT set aside order of AA on interest component in Operational Debt to meet the minimum threshold of Rs. 1 crore u/s 4 of IBC – CBRE South Asia Pvt. Ltd. Vs. United Concepts and Solutions Pvt. Ltd. – NCLAT New Delhi

The Adjudicating Authority in the impugned order has taken a view that interest cannot be added to constitute an Operational Debt, hence, the Principal Amount being less than Rs.1 Crore, the minimum threshold is not fulfilled and the application is rejected on this ground only. NCALT observed that the above issue has already been answered by this Tribunal in Prashant Agarwal’s Case reported at (2022) ibclaw.in 509 NCLAT and held that the rejection of the application under Section 9 on the above ground is erroneous. In result, we set aside the impugned order passed by the Adjudicating Authority and remit back the matter before the Adjudicating Authority for fresh consideration in accordance with law. Appeal is allowed accordingly.

NCLAT set aside order of AA on interest component in Operational Debt to meet the minimum threshold of Rs. 1 crore u/s 4 of IBC – CBRE South Asia Pvt. Ltd. Vs. United Concepts and Solutions Pvt. Ltd. – NCLAT New Delhi Read Post »