Interest Accrued Before MSME Registration Cannot Be Included In Operational Debt For Plea U/S 9 Of IBC: NCLT Mumbai

The NCLT Mumbai has ruled that interest accrued prior to MSME registration cannot be included in the operational debt for initiating a petition under Section 9 of the IBC. This decision clarifies the eligibility criteria for operational creditors under the Insolvency and Bankruptcy Code (IBC). The ruling ensures that only debts arising after MSME registration are considered for insolvency proceedings. This distinction is important for determining the rights and priorities of creditors in insolvency resolution.