The case deals with the maintainability of an application u/s 4 ...

Court ruled interest alone on loan doesn't count as operational debt. App rejected due to interest inclusion below threshold. Dismissal upheld by NCLAT.

Case Laws Insolvency and Bankruptcy

August 8, 2024

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.

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The case deals with the maintainability of an application u/s 4 ...

Court ruled interest alone on loan doesn't count as operational debt. App rejected due to interest inclusion below threshold. Dismissal upheld by NCLAT.

Case Laws Insolvency and Bankruptcy

August 8, 2024

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