Insolvency application can be filed for interest that becomes due without asking for principal amount: NCLAT

The NCLAT allowed an appeal against an order of the NCLT which found that a claim of only interest was not covered by the definition of "financial debt" under the IBC.

The National Company Law Appellate Tribunal (NCLAT) recently held that an application under Section 7 of the Insolvency Bankruptcy Code (IBC) is maintainable for the component of interest that has become due, without asking for the principal amount which has not yet become due [Base Realtors Private Limited v. Grand Realcon Private Limited].

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