The National Company Law Tribunal Bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) dismissed a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (“the code”) stating that when the loan is granted without any interest it should have a consideration of time value of Money.
Background Facts:
Mr. Sunil Chopra, Financial Creditor extended an interest-free, unsecured loan of ₹6,73,00,000/- to the Corporate Debtor, CAPL Hotels and Spa Pvt. Ltd. in 2009 and the loan was stated to be repayable on demand.
The financial statements of the Corporate Debtor consistently recorded the amount as an “Unsecured Loan.” Also, the financial statement for the year…
