The NCLAT held that SNJ’s insolvency petition under Section 9 (concerning operational debts) of the Insolvency and Bankruptcy Code, 2016 (IBC) was not maintainable since the principal amount of the debt claimed from PepsiCo had already been repaid and only a disputed claim for interest remained.
A three-member Bench of Justice Ashok Bhushan (Chairperson), and Technical Members Barun Mitra and Arun Baroka observed that the IBC could not be invoked for the recovery of interest alone, especially when the underlying contract did not provide for such interest.
It, therefore, upheld a decision by the National Company Law Tribunal (NCLT), Chandigarh, to dismiss the insolvency plea.
“The Adjudicating Authority (NCLT) has not committed any…
