Interest Cannot Be Raised Unilaterally In Insolvency Petition, Without Prior Intimation To Corporate Debtor: NCLT Bengaluru

The NCLT Bengaluru ruled that interest cannot be raised unilaterally in an insolvency petition without prior intimation to the corporate debtor. The tribunal dismissed a petition filed by Janus GBAC Ltd. against Beloorbayir Biotech Ltd., stating that interest claims must be substantiated by an agreement or invoice. The operational creditor’s claim included interest, which was not agreed upon, making the petition invalid. The tribunal emphasized that interest claims must be explicitly mentioned in agreements or invoices to be enforceable in insolvency proceedings, ensuring fairness and transparency in financial dealings.