https://www.taxtmi.com/caselaws?id=449875 The NCLAT dismissed an appeal challenging rejection of a Section 7 application for initiating CIRP against a corporate debtor. The Appellant claimed outstanding dues of Rs. 1,11,63,151/- but the Adjudicating Authority found the actual debt to be only Rs. 78,40,000/-, below the Rs. 1 crore threshold limit under Section 4 of IBC. The NCLAT upheld findings that the Appellant inflated interest calculations beyond the one-year agreement period and improperly included commission on sale amounts, which do not qualify as financial debt under Section 5(8) of IBC as they lack time value of money characteristics. The tribunal concluded this was misuse of IBC provisions to resolve contractual disputes. en-us Tue, 20 Feb 2024 00:00:00 +0530 Thu, 22 Feb 2024 08:20:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449875 The NCLAT dismissed an appeal challenging rejection of a Section 7 application for initiating CIRP against a corporate debtor. The Appellant claimed outstanding dues of Rs. 1,11,63,151/- but the Adjudicating Authority found the actual debt to be only Rs. 78,40,000/-, below the Rs. 1 crore threshold limit under Section 4 of IBC. The NCLAT upheld findings that the Appellant inflated interest calculations beyond the one-year agreement period and improperly included commission on sale amounts, which do not qualify as financial debt under Section 5(8) of IBC as they lack time value of money characteristics. The tribunal concluded this was misuse of IBC provisions to resolve contractual disputes. Case-Laws Insolvency and Bankruptcy Tue, 20 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449875