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TMI Blog2022 (11) TMI 930X X X X Extracts X X X X X X X X Extracts X X X X ..... r a period of two years thus paying back the entire principal amount out of the total outstanding debt. Pursuant to the Order of this Bench dated 13th February 2020, the Operational Creditor revised the Petition and amended the claim amount to Rs. 9,54,749/- which solely includes the interest component that remains unpaid till date. In this regard, we note that it is now settled law that interest, in itself, is not sufficient to maintain a Petition under Section 9 of the Code. The interest clause in the invoices cannot be treated as an agreement between the parties for claiming interest and moreover, such interest amount cannot be the sole reason for continuing proceedings against the Corporate Debtor under this Code after the principal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The present Petition is filed before this Adjudicating Authority on the ground that the Corporate Debtor failed to make payment of Principal sum of Rs.19,66,159/- (Rupees Nineteen Lakhs Sixty-Six Thousand One Hundred Fifty- Nine Only) together with interest @24% per annum of Rs. 9,54,749/- (Rupees Nine Lakhs Fifty-Four Thousand Seven Hundred Forty-Nine) aggregating to a sum of Rs.29,20,908/- (Rupees Twenty-Nine Lakhs Twenty Thousand Nine Hundred and Eight Only). Out of this aggregate amount, Rs. 1,66,159/- stands repaid, hence the total claim amount now is Rs. 27,54,749/- (Rupees Twenty- Seven Lakhs Fifty-Four Thousand Seven Hundred Forty-Nine Only). 3. The Corporate Debtor approached the Operational Creditor for the supply of cer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate Debtor wrote to the Operational Creditor on several occasions stating that the delay in payments were due to labour issues and adverse market conditions because of which their business was affected and that they intend to pay off the remaining debt in due course. Further, pursuant to the Order dated 2nd January 2020, the Operational Creditor amended the total claim amount and revised it to Rs. 9,54,749/- which is the interest component up to 1st April 2018. The Corporate Debtor filed a Reply to this Petition dated 18th July 2021 wherein it was submitted that the claim of the Operational Creditor for solely the interest component of the debt does not qualify as operational debt within the meaning of Section 5(21) of the Code and cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vations made by the NCLAT in the matter of S.S. Polymers vs. Kanodia Technoplast Limited [Company Appeal (AT) (Insolvency) No. 1227 of 2019]: The Learned Counsel for the Appellant relied on Invoices to suggest that in the Invoices , the claim was raised for payment of interest. However, we are not inclined to accept such submission as they were one side Invoices raised without any consent of the Corporate Debtor . This makes it clear that the interest clause in the invoices cannot be treated as an agreement between the parties for claiming interest and moreover, such interest amount cannot be the sole reason for continuing proceedings against the Corporate Debtor under this Code after the principal amount has been repaid. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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