After the receipt of the principal sum, it would not be justifiable for the Operational Creditor to continue to prosecute the application u/s 9 of IBC, 2016 with the sole object of recovering the interest amount – Shubhrattan General Suppliers Pvt. Ltd. Vs. Gammon India Ltd. – NCLT Mumbai Bench
Hon’ble NCLT Mumbai Bench refers judgments in Krishna Enterprises vs. Gammon India (2023) ibclaw.in 91 NCLAT and Rohit Motawat vs. Madhu Sharma Proprietor Hind Chemical Corporation and another 2023 ibclaw.in 128 NCLAT and holds that after the receipt of the principal sum, it would not be justifiable for the Operational Creditor to continue to prosecute the Application u/s 9 of the Code, 2016 with the sole object of recovering the interest amount as the object of the IB Code is resolution and not recovery.
