Corporate Debt Resolution: Interest Default Beyond Moratorium Triggers Insolvency Proceedings Under Section 7 of Insolvency Code

NCLAT upheld the Adjudicating Authority's admission of a Section 7 Application based on corporate debtor's interest default subsequent to the 10A period. The Tribunal confirmed that the default in interest payment from 26.03.2021 to 31.05.2021, exceeding Rs.9.38 crores, constituted a valid ground for application admission. The Tribunal explicitly clarified that the precise claim amount would be determined during the CIRP verification process, not at the admission stage. The appeal challenging the Section 7 Application was consequently dismissed, maintaining the original order's validity. .....

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