The National Company Law Appellate Tribunal (NCLAT) New Delhi bench of Justice Ashok Bhushan (Judicial Member), Mr. Arun Baroka (Technical Member) and Mr. Barun Mitra (Technical Member) has held that the interest cannot be added to the outstanding liability when there is no contract between the parties to this effect and no past practice justifying such action merely to cross the threshold of Rs. 1 crore under section 4 of the Insolvency and Bankruptcy Code, 2016 (Code).
Brief Facts:
A petition under Section 9 of the Code was filed by M/s Riddhi Siddhi Metals (Operational Creditor) seeking initiation of Corporate Insolvency Resolution Process (CIRP) against M/s Aquarius H2O Dynamics Pvt. Ltd. (Corporate Debtor) for an …
