The provisions of Code cannot be allowed as a recovery mechanism or to recover the claim of interest by Operational Creditor – M/s Amsons Communication Pvt. Ltd. Vs. M/s ATS Estates Pvt. Ltd. – NCLAT New Delhi
NCLAT affirms the decision of the AA and holds that the claim of interest being disputed, no error has been committed by the Adjudicating Authority in rejecting the Application under Section 9 of the Code. The provisions of Code cannot be allowed as a recovery mechanism or to recover the claim of interest by Operational Creditor. The Application under Section 9 cannot be converted into proceedings for recovery of interest by Operational Creditor on delayed payment, that is not the object of IBC. The object of the IBC is to resolve the insolvency of the Corporate Debtor and to bring back the Corporate Debtor on its feet. The present is not a case where there is any insolvency resolution of Corporate Debtor.
