https://www.taxtmi.com/caselaws?id=305197 Initiation of CIRP under Section 7 of the Insolvency and Bankruptcy Code requires an existing financial debt and a corresponding default. Although the definition of debt is broad and includes interest where applicable, a claim confined only to accrued interest does not satisfy the statutory threshold if the principal amount has not yet become due and payable. On the terms of the debenture certificate, the principal was still not due, so the interest-only claim was insufficient for Section 7 proceedings. Accordingly, an application based solely on defaulted interest is not maintainable in the absence of a presently due principal debt. en-us Mon, 23 May 2022 00:00:00 +0530 Tue, 22 Nov 2022 09:01:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=305197 Initiation of CIRP under Section 7 of the Insolvency and Bankruptcy Code requires an existing financial debt and a corresponding default. Although the definition of debt is broad and includes interest where applicable, a claim confined only to accrued interest does not satisfy the statutory threshold if the principal amount has not yet become due and payable. On the terms of the debenture certificate, the principal was still not due, so the interest-only claim was insufficient for Section 7 proceedings. Accordingly, an application based solely on defaulted interest is not maintainable in the absence of a presently due principal debt. Case-Laws Insolvency and Bankruptcy Mon, 23 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=305197