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2018 (10) TMI 1798 - NATIONAL COMPANY LAW TRIBUNAL, HYDERABADGrant of stay on the reconstituted CoC - Demand of interest - Section 5(7) or 5(8) of IBC - HELD THAT:- The Applicant is Financial Creditor. Initially he has filed this Application against Respondent Nos. 1 & 2. Respondent No. 1 is Resolution Professional. He is representing Viceroy Hotels Limited/Respondent No. 2. During pendency of this Application the 3rd Respondent got itself impleaded as Respondent No. 3 and filed counter opposing the Application. Interest is not allowed on monthly rests. Therefore, claiming compound interest is not permissible. A plain reading of interest portion in the clause would go to show purchaser is entitled for interest @ 2% per month. This does not amount that purchaser is entitled for Compound interest. The term should have contained permission to claim interest @ 2% to be compounded on monthly rests when there is no such mention in the interest portion, Respondent No. 3 is not entitled for claiming compound interest. Therefore, the Resolution Professional can be directed to revise the claim made by Respondent No. 3 by calculating the interest on straight line method i.e. 24% p.a. on the outstanding balance and then assess the voting right of R-3 and its associates. This Application can be disposed off with this direction. Application is disposed off by giving direction to Resolution Professional to revise the claim submitted by R-3/M/s Mahal Hotels Private Limited and its associates by calculating interest on the outstanding balance @ 24% p.a. and then assess the percentage of voting share of Respondent No. 3 and its associate companies.
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