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Claim for only interest without agreement not maintainable in the case of an operational creditor

In S.S. Polymers Vs. Kanodia Technoplast Limited, appeal was filed against order of NCLT, wherein the Appellant (S.S. Ploymers) filed application u/s 9 of the Code for initiation of CIRP against M/s Kanodia Technoplast Limited (Corporate Debtor). The Adjudicating Authority (NCLT), Court No.IV, New Delhi, rejected the application on the ground that there is no debt payable and there is no default.

NCLAT holding the application as having been filed with malicious intent  observed that before the admission of an application under Section 9 of the I&B Code, the ‘Corporate Debtor’ paid the total debt. The application was pursued for realisation of the interest amount, which, according to us is against the principle of the I&B Code, as it should be treated to be an application pursued by the Applicant with (to realise only Interest) for any purpose other than for the Resolution of Insolvency, or Liquidation of the ‘Corporate Debtor’ and which is barred in view of Section 65 of the I&B Code.

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