NCLAT dismisses insolvency plea against PepsiCo; says IBC can't be invoked only for repayment of interest

The NCLAT dismissed an insolvency plea against PepsiCo, ruling that IBC can't be invoked solely for interest repayment without addressing principal debt. The tribunal held that operational creditors must demonstrate actionable debt beyond just interest components to trigger CIRP. The case involved a ₹4.8 crore claim where 85% was disputed interest. This judgment prevents abuse of IBC for pressure tactics in contractual disputes. It clarifies that interest-only claims don't constitute "default" under Section 4 unless the principal is also due and unpaid. The ruling protects companies from facing insolvency threats over disputed interest claims while preserving legitimate operational creditor rights.