The case deals with the maintainability of an application u/s 4 of the Code based on the minimum default...

The case deals with the maintainability of an application u/s 4 of the Code based on the minimum default amount. The court held that interest alone on a loan does not constitute operational debt. Citing relevant cases, it was emphasized that interest cannot be recovered without a signed agreement. The application, below the threshold amount, was rejected due to the inclusion of interest. Additionally, a pre-existing dispute over cheques was noted, with the Respondent alleging fraud by the Appellant. The Adjudicating Authority rightly dismissed the application, considering the threshold amount and pre-existing disputes. The appeal was subsequently dismissed by the NCLAT. .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X