Interest Claims Must Be Based On Contractual Agreement, Not Just Invoice Terms: NCLT Kolkata

The National Company Law Tribunal (NCLT) in Kolkata has clarified that interest claims in insolvency cases must be based on the terms of the contractual agreement between parties and not merely on the terms outlined in invoices. This ruling came during a dispute where a creditor sought interest based on invoice terms, but the tribunal held that the contract’s specific terms should take precedence. The decision underscores the importance of well-drafted contracts in business transactions, as these documents form the primary basis for resolving disputes. It also highlights the tribunal's role in ensuring that interest claims are justified and aligned with contractual obligations.