An Operational Creditor is not entitled for interest in the absence of any written contract between the parties – Timex Bond Industries Pvt. Ltd. Vs. Deist Industries Pvt. Ltd. – NCLT Mumbai Bench

NCLT Mumbai Bench held that the observations and findings of a criminal court are not binding in civil proceedings and whereas the observations and findings of civil proceedings are binding in criminal proceeding as per the settled proposition of law. However, it is settled proposition of law as laid down by Hon’ble NCLAT in various authoritative pronouncements that an Operational Creditor is not entitled for interest in the absence of any written contract between the parties. It is important to observe here that there is no stipulation for payment of interest on the invoices in case of any delay in making payment by the Corporate Debtor. Therefore, this bench has no hesitation to hold that the Operational Creditor is not entitled to claim any interest in this case on both counts.

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