Interest cannot be clubbed with the Principal amount for the purpose of threshold requirement under Section 9 of IBC unless there is an express provision for such addition in the Agreement, Work order or the Invoices – J Rajendra Naidu Vs. Amma Construction India Pvt. Ltd. – NCLT Bengaluru Bench

NCLT Bengaluru Bench held that it is relevant to point out that interest cannot be clubbed with the Principal amount for the purpose of threshold requirement under Section 9 unless there is an express provision for such addition in the Agreement, Work order or the Invoices. This has been affirmatively decided by various Authorises as follows: Hon’ble NCLAT order in Mr. Prashant Agarwal v. Vikas Parasrampuria (2022) ibclaw.in 509 NCLAT; NCLT, Kolkata Bench in M/s Plastofab Vs. Electroteknica Switchgears Pvt. Ltd. dated 20.02.2022 (2022) ibclaw.in 358 NCLT, and order dated 25.05.2023 of this Tribunal in North West Carrying Company, LLP Vs. Metro Cash and Carry India Pvt. Ltd. (2023) ibclaw.in 237 NCLT.

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