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2022 (6) TMI 53 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate Debtor failed to make repayment of interest - principal amount is paid - Financial Creditors - existence of debt and dispute or not - Whether the CIRP can be initiated / triggered solely on the basis of the un-paid amount of interest when the entire principal amount of debt has been discharged by the Corporate Debtor? - HELD THAT:- The interest is not included in the term “debt” per se. Rather, the “interest” can be claimed as “financial debt” only if such debt exists. The “interest” component alone cannot be claimed or pursued, in absence of the debt, to trigger a CIR process against the corporate Debtor. Further, the application pursued for realization of the interest amount alone is against the intent of the IBC, 2016. It is concluded that the CIRP against a Corporate Debtor cannot be initiated/triggered solely on the basis of the un-paid amount of interest where the entire principal amount has already been discharged by the Corporate Debtor. Petition dismissed.
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