The attempt to recover interest for delayed payment under Section 60(5) of IBC, 2016 in absence of any delayed interest clause in invoice or agreement, is like a recovery proceeding on the Corporate Debtor, which is barred in terms of Section 33(5) of IBC, 2016 – Parkash Cotton Pressing Factory Vs. Allahabad Bank and Anr. – NCLT Chandigarh Bench
The Hon’ble Adjudicating Authority observes that in the absence of any clause on interest for delayed payment clause in any agreement or invoice, the Applicant is barred to claim this amount by virtue of Section 33(5) of IBC. In terms of Section 33(5) of IBC, no legal proceedings can be initiated against Corporate Debtor, therefore the same is covered under the term “other legal proceeding” used under the section 33(5) of IBC. Hence, the attempt to recover this amount under Section 60(5) of IBC, 2016 in absence of any delayed interest clause in invoice or agreement on equity terms, is like a recovery proceeding on the Corporate Debtor, which is barred in terms of Section 33(5) of IBC, 2016.