Petition U/S 7 Of IBC Can Be Entertained For Default On Interest Component Of Loan If It Occurs After Section 10A Period: NCLAT

The NCLAT held that a petition under Section 7 of the IBC is maintainable based on the default of the interest component committed after the Section 10A period, if the ₹1 crore threshold limit is crossed. Section 10A provided a temporary suspension of IBC proceedings for defaults during a specific period. The tribunal clarified that defaults occurring after this period, including interest, can be the basis for initiating CIRP if the total default exceeds the statutory threshold.