The National Company Law Appellate Tribunal (NCLAT) recently held, in the matter of Base Realtors Private Limited v. Grand Realcon Private Limited
Posted On : April 28, 2023
The National Company Law Appellate Tribunal (NCLAT) recently held, in the matter of Base Realtors Private Limited v. Grand Realcon Private Limited, that an application under Section 7 of the Insolvency Bankruptcy Code (IBC), 2016 is maintainable for the component of interest that has become due, without asking for the principal amount which has not yet become due. This NCLAT judgment impliedly expanded the definition of “financial debt” to also include cases where only interest is payable, even if principal amount has not yet become due or payable
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