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2022 (11) TMI 930 - NATIONAL COMPANY LAW TRIBUNAL , MUMBAI BENCHMaintainability of petition - initiation of CIRP for realisation of interest due - Corporate Debtor failed to make repayment of its dues of interest - Operational Creditors - existence of debt and dispute or not - whether CIRP can be pursued for realization of the interest amount alone? - HELD THAT:- The Corporate Debtor has time and again acknowledged the existence of the operational debt and sought time to repay the same. Undisputedly, the payment was delayed by the Corporate Debtor but it is the Operational Creditor’s own submission that an amount of Rs. 19,66,159/- was repaid by the Corporate Debtor over a period of two years thus paying back the entire principal amount out of the total outstanding debt. Pursuant to the Order of this Bench dated 13th February 2020, the Operational Creditor revised the Petition and amended the claim amount to Rs. 9,54,749/- which solely includes the interest component that remains unpaid till date. In this regard, we note that it is now settled law that interest, in itself, is not sufficient to maintain a Petition under Section 9 of the Code. The interest clause in the invoices cannot be treated as an agreement between the parties for claiming interest and moreover, such interest amount cannot be the sole reason for continuing proceedings against the Corporate Debtor under this Code after the principal amount has been repaid - The Operational Creditor now continues to proceed against the Corporate Debtor for the interest amount which was considered to be barred by the NCLAT in S.S. Polymers vs. Kanodia Technoplast Limited [2019 (11) TMI 1428 - NATIONAL COMPANY LAW APPELLATE TRIBUNAL, NEW DELHI]. Thus, by continuing to proceed against the Corporate Debtor for the interest amount alone, all the Operational Creditor intends is to recover and realise their debt which is against the letter and spirit of the Code. Petition dismissed.
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