9911796707
TMI Blog2022 (6) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... ication under the Section 7 of the Insolvency and Bankruptcy Code, 2016 (for brevity, the 'IBC, 2016') read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 with a prayer to initiate the Corporate Insolvency process against KAD Housing Private Limited (for brevity, the 'Corporate Debtor'). 2. The Corporate Debtor namely, KAD Housing Private Limited is a Company incorporated on 24.11.2004 under the provisions of the erstwhile Companies Act, 1956 with CIN U55101DL2004PTC130776, having its registered office at 151, Savita Vihar, New Delhi-110092, which falls within the territorial jurisdiction of this Tribunal. 3. The Authorized Share Capital of the Corporate Debtor Company is Rs.25,00,00,000/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel appearing for the Corporate Debtor stated that since the principal amount has been paid by the Corporate Debtor, therefore, the petition needs to be dismissed. 9. After hearing submission of both the parties and taking note of the fact that the principal amount of debt has already been discharged, the issue which emerges for our adjudication is "Whether the CIRP can be initiated / triggered solely on the basis of the un-paid amount of interest when the entire principal amount of debt has been discharged by the Corporate Debtor". 10. At this juncture, we refer to the definition of term "financial debt" as defined under Section 5(8) of IBC, 2016, which is reproduced below : (8) "financial debt" means a debt alongwith interest, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2019. The relevant extracts are given below : "5. Admittedly, before the admission of an application under Section 9 of the I&B Code, the 'Corporate Debtor' paid the total debt. The application was pursued for realisation of the interest amount, which, according to us is against the principle of the I&B Code, as it should be treated to be an application pursued by the Applicant with malicious intent (to realise only Interest) for any purpose other than for the Resolution of Insolvency, or Liquidation of the 'Corporate Debtor' and which is barred in view of Section 65 of the I&B Code.." 15. In view of the aforesaid discussion, it can be inferred that the "interest" component alone cannot be claimed or pursued, in absence of the debt, to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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