Adjudicating Authority Can't Presume Applicability Of Interest On Principal Amount In Absence Of Express Agreement Between Parties: NCLAT

The NCLAT (National Company Law Appellate Tribunal) ruled that the Adjudicating Authority (NCLT) cannot presume interest on the principal amount in the absence of an express agreement between the parties. The tribunal clarified that interest is a contractual element and must be explicitly agreed upon; it cannot be unilaterally imposed or presumed by the adjudicating authority in insolvency proceedings.