Application u/s 7 of IBC can be Admitted if Interest on Principal Amount Crosses Threshold Limit:

The NCLAT clarified that an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) can be admitted if the interest on the principal amount exceeds the threshold limit. This ruling came in a case involving default on a loan repayment, where the applicant claimed that the interest accrued on the principal sum had crossed the prescribed limit. The NCLAT emphasized that the threshold limit for the application of IBC is determined not only by the principal amount but also by the accumulated interest, allowing creditors to proceed with claims when this limit is surpassed.