Does TDS deduction on the interest payable constitute any acknowledgment of liability as outstanding claimed to be in default? | Can interest be clubbed along with the debt to cross threshold limit of Rs. 1 crore under Section 4 of IBC on the basis of interest clause mentioned in the invoices – Sudarshan Paper & Board Pvt. Ltd. Vs. Verges Properties LLP – NCLT Kolkata Bench

Hon’ble NCLT Kolkata Bench refers various judgments and held that interest clause in invoice is not good enough and has to be supported with agreement by the Corporate Debtor/buyers for payment of such interest. Debits notes issued on Interest are unilateral and the Corporate Debtor has never agreed to pay. TDS deduction on the interest payable does not constitute any acknowledgment of liability as outstanding claimed to be in default.

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