For finding out threshold limit under Section 4 of IBC both amount Principal and Interest has to be computed – Netafirm Agricultural Financing Agency Pvt. Ltd. Vs. Baliraja Sakhar Karkhana Ltd. – NCLAT New Delhi

In this case, the Adjudicating Authority has rejected an application filed under Section 7 of IBC on the ground that it does not fulfil the threshold limit of Rs.1 Crore.
NCLAT set aside impugned order holding that the amount of Principal and Interest added is Rs.1.33 Crore i.e. beyond the minimum threshold required. The Deed of Guarantee mentions about the interest on default. For finding out threshold both amount Principal and Interest has to be computed.

For finding out threshold limit under Section 4 of IBC both amount Principal and Interest has to be computed – Netafirm Agricultural Financing Agency Pvt. Ltd. Vs. Baliraja Sakhar Karkhana Ltd. – NCLAT New Delhi Read Post »