The National Company Law Appellate Tribunal (NCLAT) has held that the interest component on Inter-Corporate Deposits (ICDs) cannot be excluded from the computation of financial debt under the Insolvency and Bankruptcy Code, 2016 (IBC), where the Corporate Debtor has acknowledged its liability.
The Appellate Tribunal allowed the appeal filed by Wild Dreams Trading Company Pvt. Ltd. against Ascendancy Financial Services Pvt. Ltd. and set aside the NCLT’s order dismissing the Section 7 insolvency application.
The appeal arose from an order of the NCLT, Chandigarh Bench which had rejected the Financial Creditor’s application on the ground that the outstanding principal debt of ₹62 lakh fell below the minimum…