Mere non denial of the claim for interest by the Corporate Debtor cannot create a contract for payment of interest – PMC YM-Pharma Pvt. Ltd. Vs. Krishna Premium Care Services LLP – NCLT Hyderabad Bench
The Applicant contended that the Corporate Debtor never denied the claim for payment of interest made by the Operational Creditor and as per the provisions of the Negotiable Instructions Act, the Applicant is entitled to claim interest at 18%, on the subject transaction as it is a commercial transaction. The Adjudicating Authority held that in the light of the rival submissions we have carefully perused the invoices and other material relied on by the Applicant and nothing is found on record, as regards, payment of interest. Mere non denial of the claim for interest by the Corporate Debtor cannot create a contract for payment of interest.