The National Company Law Tribunal, Mumbai, comprising Justice V.G. Bisht (Retd.) and Prabhat Kumar (Member – Technical), examined if a petition u/s 7 of the IBC could be admitted when the amount claimed in the petition is subsequently offered by the corporate debtor through a demand draft.
The bench dismissed the petition and observed that IBC is not a recovery mechanism and the additional claims of interest beyond the amount mentioned in the petition cannot justify admission.
Background
Ritwik Finance Pvt. Ltd., an NBFC, extended a secured loan facility of Rs. 60 lakhs to Genesiis Constro Pvt. Ltd. The financial creditor claimed an amount of Rs 1.16 Cr, which includes interest, TDS, and penal charges. The financial…