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.
NCLAT
NCLAT

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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