Will 'interest’ be included in the definition of a 'debt’ under the IBC? NCLT answers

Varun Marwah April 27 2017

The Chandigarh Bench of the NCLT has held that ‘interest’ would not be included in the definition of ‘debt’ insofar as debt owed to an operational creditor is concerned under the provisions of the Insolvency and Bankruptcy Code, 2016 (Code).

Wanbury Ltd. (Creditor) had filed a winding up petition in the Punjab & Haryana High Court in 2014. However, the proceedings were transferred to the NCLT, in March 2017, in accordance with Rule 5 of the Companies (Transfer of pending proceedings) Rules, 2016.

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