TaxTMI 
TaxTMI 
2022 (11) TMI 930
X X X X Extracts X X X X
X X X X Extracts X X X X
....ocess (CIRP) against Capital Nonwovens Private Limited (hereinafter called "Corporate Debtor") alleging that the Corporate Debtor committed default in making payment to the Operational Creditor. This Petition has been filed by invoking the provisions of Section 9 Insolvency and Bankruptcy Code, 2016 (hereinafter called "Code") read with Rule 6 of Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016. 2. The present Petition is filed before this Adjudicating Authority on the ground that the Corporate Debtor failed to make payment of Principal sum of Rs.19,66,159/- (Rupees Nineteen Lakhs Sixty-Six Thousand One Hundred Fifty- Nine Only) together with interest @24% per annum of Rs. 9,54,749/- (Rupees Nine Lakhs Fifty-Four....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l keeping in mind the long-standing business relations between them and only after repeated requests from the Operational Creditor. Since no payment was received by the Operational Creditor, they filed the present Petition on 9th May 2018. 5. Post this, in due course, the Corporate Debtor paid a sum of Rs. 19,66,159/- Lakhs (the Principal amount due) over a period of two years in scattered instalments. The Corporate Debtor wrote to the Operational Creditor on several occasions stating that the delay in payments were due to labour issues and adverse market conditions because of which their business was affected and that they intend to pay off the remaining debt in due course. Further, pursuant to the Order dated 2nd January 2020, the Operat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ns 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. 8. It is the argument of the Operational Creditor that the Corporate Debtor never objected to the interest clause in the invoices raised and agreed to the interest rates provided therein. At this stage, it is pertinent to note the observations made by the NCLAT in the matter of S.S. Polymers vs. Kanodia Technoplast Limited [Company Appeal (AT) (Insolvency) No. 1227 of 2019]: "The Learned Counsel for the Appellant relied on 'Invoices' to suggest that in the 'Invoices', the claim was raised for payment of interest. However, we are not inclined to accept such submission as th....