Section 3 of the Interest Act, 1978 is not applicable in case of submission of claim for interest without any documents before RP in Insolvency Code – Capriso Finance Ltd. and Anr. Vs. Trishul Dream Homes Ltd. – NCLAT New Delhi
In this case, the Resolution Professional has accepted the claim of the Appellant/ Financial Creditor but has not allowed the interest. In IA filed by the Financial Creditor, NCLT held that the Financial Creditor has failed to place any document which entitles for the alleged interest and the Resolution Professional could admit the amount which is principal amount only. Counsel for the Appellant challenging the order submits that under the Interest Act, 1978, the entitlement is there although he submits that no document could be filed for claiming interest.
Hon’ble NCLAT holds that there cannot be any dispute to the statutory provision of Section 3 of the Interest Act, 1978 which empowers the Court to allow the interest. In the present case, it was the Resolution Professional who had to collate the claim and allow the interest. Present was not a case where Section 3 is applicable and it was only claim to be admitted in the CIRP, hence, reliance on Section 3 is misplaced.