Interest on loan is not the only binding criterion for determining time value of money for Financial Debt under IBC – Shivam Agrioils Pvt. Ltd. Vs. Shree Krishna Vanaspati Industries Pvt. Ltd. – NCLAT New Delhi

NCLAT observed that in this case, the Appellant had paid an amount of Rs.10.46 crore on behalf of the Corporate Debtor to the SBI with an intent to gain from the land, plant and machinery and factory building changing hands from the Corporate Debtor to the Appellant The expectation to benefit from acquiring the entire right, title and interest over the subject property at a lesser rate compared to the market value has to be factorized as time value of money. It is trite law that under the IBC once a debt which becomes due or payable, in law and in fact, and there is incidence of non-payment of the said debt in full or even part thereof, CIRP may be triggered by the financial creditor as long as the amount in default is above the threshold limit. It is also well accepted that debt means a liability in respect of a claim and claim means a right to payment even if it is disputed.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

IBC-Case Laws-NCLAT
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