CIRP can't be triggered solely on basis of unpaid interest when principal debt has been discharged: NCLT

The Tribunal noted that interest is not included in the term “debt” per se. Rather, the “interest” can be claimed as “financial debt” only if such debt exists.
CIRP can't be triggered solely on basis of unpaid interest when principal debt has been discharged: NCLT
NCLT

The National Company Law Tribunal (NCLT), Delhi on Monday held that the Corporate Insolvency Resolution Process (CIRP) cannot be initiated solely on the basis of unpaid interest when the corporate debtor has discharged the principal amount [Saraf Chits Private Limited v. VKSS International Private Limited].

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