No Clause For Payment Of Interest, OC Can't Add Interest Only To Cross Threshold Limit Of 1 Crore: NCLT Kolkata

Background Facts

Khatunaresh Impex Pvt. Ltd. ("Operational Creditor") had filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC"), seeking initiation of Corporate Insolvency Resolution Process ("CIRP") against Jindal (India) Ltd. ("Corporate Debtor"). The principal amount in default is claimed to be Rs. 90,60,102/-. The Operational Creditor submitted that alongwith 15% interest, the amount in default crosses the threshold limit of Rs. 1 Crore. Reliance was placed on two letters written by Operational Creditor to the Corporate Debtor claiming interest, which the latter did not dispute. Hence, it was presumed that the Corporate Debtor accepted the imposition of 15% interest on principal amount.

The Adjudicating Authority observed that the principal amount was below the threshold limit of Rs. 1 Crore as given under IBC and 15% interest was claimed by the Operational Creditor over the principal amount. Though it has not been pleaded anywhere there was any verbal assurance given by Corporate Debtor to pay interest @ 15%. The Bench was not satisfied that there was any contract or agreement in any manner for payment of interest at the rate of 15% or at any rate between the Operational Creditor and Corporate Debtor.

The Bench held that the amount in default has been claimed alongwith 15% interest only to cross the threshold limit. "This is not a recovery forum. Such kind of petition are purely wastage of time. We deem it proper that this petition is liable to be rejected at this stage."

The Bench rejected the petition as not maintainable.

Case Title: Khatunaresh Impex Pvt. Ltd. v Jindal (India) Limited

Case No.: C.P. (IB)/291(KB)2022

Counsel for Operational Creditor: Ms. Ujjaini Chatterjee, Adv., Mr. Sidhanta Basu, Adv. Mr. Rajib Ghosh, Adv.

Counsel for Jindal: Mr. A. Sinha, Adv., Mr. Subhasis Dey, Adv. Mr. Victor Mukherjee, Adv.

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