NCLT Rules Interest Not Mandatory for Debt to Qualify as Financial; Balance Sheet Review Crucial for Creditor Status.

Initiation of CIRP - NCLT rejected the application - Words ‘if any’ after the word interest clearly indicates that it is not mandatory that debt should be alongwith interest in all cases - the consideration of the balance sheet for Financial Year 2016-17 may also be relevant for determining as to whether there was a financial debt or not. Thus, by taking into consideration the Balance Sheet, the Adjudicating Authority can re-consider the question of Applicant being Financial Creditor or not. - AT .....

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