The National Company Law Appellate Tribunal (NCLAT) has held that invoices that have been sent by the Operational Creditor containing the term of interest cannot be operated against the Corporate Debtor unless there is an agreement for interest or any other document showing that the Corporate Debtor has accepted the obligation for interest.
The appellate authority found the clause from the work order to not be read as any obligation for payment of interest by the Corporate Debtor. Further, finding that the Operational Creditor did not accept the offer for settlement but the entire Principal Amount was already paid, as claimed in Part IV. Thus, no claims survive to be decided in the Section 9 application.
This Appeal was filed against the order of the Adjudicating Authority by which the Section 9 application filed by the Operational Creditor has been rejected on the ground that the amount of ₹1,88,51,361/- has been paid to the Operational Creditor which was towards the Principal Amount.
The judgment was pronounced by the bench of Justice Ashok Bhushan (Chairperson), Barun Mitra, and Arun Baroka (Technical Member).
