https://www.taxtmi.com/caselaws?id=759800 NCLAT dismissed the appeal challenging NCLT's rejection of Section 9 application under IBC. The tribunal held that claimed interest of Rs 1,66,56,022 was invalid as no interest provision existed in the license agreement. Additionally, Rs 69,30,442 in license fees defaulted during COVID-19 prohibited period under Section 10A were properly excluded. After removing inflated claims, improper interest calculations, and amounts falling within prohibited period, actual outstanding default was Rs 35,02,857, below the mandatory Rs 1 crore threshold for CIRP initiation. The continuous default argument was rejected as artificially created through inflated claims. en-us Wed, 25 Sep 2024 00:00:00 +0530 Mon, 07 Oct 2024 10:45:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759800 NCLAT dismissed the appeal challenging NCLT's rejection of Section 9 application under IBC. The tribunal held that claimed interest of Rs 1,66,56,022 was invalid as no interest provision existed in the license agreement. Additionally, Rs 69,30,442 in license fees defaulted during COVID-19 prohibited period under Section 10A were properly excluded. After removing inflated claims, improper interest calculations, and amounts falling within prohibited period, actual outstanding default was Rs 35,02,857, below the mandatory Rs 1 crore threshold for CIRP initiation. The continuous default argument was rejected as artificially created through inflated claims. Case-Laws IBC Wed, 25 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759800