IBC Not A Recovery Mechanism, Additional Claims Of Interest Beyond Amount In Petition Cannot Justify Admission Of Insolvency Plea: NCLT Mumbai

The NCLT (National Company Law Tribunal) has dismissed a petition after a "demand draft being offered to pay amount claimed in petition." This highlights a procedural aspect in insolvency proceedings. If a corporate debtor or respondent offers to pay the claimed debt (or part of it) through a demand draft during the pendency of the insolvency petition, and the NCLT deems the offer to be legitimate and covering the disputed amount, it may dismiss the petition, as the default is effectively cured.