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TMI Blog2022 (1) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... rincipal amount of debt to arrive at the minimum threshold of Rs.1 Crore for complying with the provision of Section 4 of IBC, 2016 - Since the present application has been filed in the year 2021, therefore, there are no force in the arguments of Ld. Counsel of Operational Creditor that the limit of Rs. 01 Crore is not applicable to its case. Since the Principal amount of operational debt claimed by the Applicant is less than Rs.01 Crore and the Application is filed in the year 2021, the Application is not maintainable under Section 4 of IBC, 2016 and is accordingly, dismissed. - (IB)-797(ND)2021 - - - Dated:- 19-1-2022 - SH. ABNI RANJAN KUMAR SINHA, HON BLE MEMBER (J) AND SH. L. N. GUPTA, HON BLE MEMBER (T) For the Applicant : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l amount and the remaining Rs.51,33,514/- is the interest component. Since the principal outstanding claimed by the Operational Creditor is less than Rs. 1 Crore, a query to the Applicant was raised by this Bench as to whether the Principal and Interest amounts can be clubbed together to reach the minimum threshold of Rs. 1 Crore as stipulated under Section 4 of IBC, 2016. 6. That in response, it was submitted by the Ld. Counsel appearing for the Operational Creditor that the invoices raised in support of debt contained the provision of interest and accordingly, the Applicant has claimed the interest as part of the Operational Debt. 7. To adjudicate this issue, it is imperative to examine the various related provisions of IBC, 2016. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, we further refer to the definition of Operational Debt and Financial Debt as defined under section 5(21) and 5(8) of IBC, 2016 respectively. The same are reproduced below (21) operational debt means a claim in respect of the provision of goods or services including employment or a debt in respect of the [payment] of dues arising under any law for the time being in force and payable to the Central Government, any State Government or any local authority; (8) financial debt means a debt alongwith interest, if any, which is disbursed against the consideration for the time value of money and includes - .. (Emphasis supplied) 12. That from the above discussion, it can be inferred that the interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ifference between the definition of the term financial debt and the operational debt . Under Section 5(8) the term financial debt means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and that is an inclusive definition. In the definition of the term operational debt under section 5(21) the word interest has not been mentioned 14. That in the light of the above discussion, we are of the view that the Interest amount cannot be clubbed with the Principal amount of debt to arrive at the minimum threshold of Rs.1 Crore for complying with the provision of Section 4 of IBC, 2016. 15. That the Ld. Counsel appearing for the Applicant had taken another plea in the hearing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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