This case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which initiated Corporate Insolvency Resolution Proceedings (CIRP) against Exclusive Linen Fabrics Pvt. Ltd. based on an application filed by Shree Hari Yarns Pvt. Ltd. The appellant, Shitanshu Bipin Vora, the suspended director of the corporate debtor, challenges the NCLT's order, arguing that the alleged default amount includes an arbitrary interest component and that the application is not maintainable. The respondent, Shree Hari Yarns Pvt. Ltd., claims that the corporate debtor defaulted on a payment of ₹1,29,08,449/-, including principal and interest. The appellant contends that there was no agreement for the levy of interest and that the principal
…Shitanshu Bipin Vora, the suspended director of Exclusive Linen Fabrics Pvt. Ltd. (Corporate Debtor), appealed against the NCLT's order to initiate CIRP based on an application by Shree Hari Yarns Pvt. Ltd. (Operational Creditor). The Operational Creditor claimed a default of ₹1,29,08,449/-, including ₹88,16,301/- as principal and ₹40,92,148/- as interest. The Corporate Debtor argued that there was no agreement for interest, and the principal amount was below the ₹1 crore threshold for CIRP initiation. The invoices contained a clause stating 'interest will be charged on delayed payment @ 18%', but did not specify the time period (per annum or per month). The Corporate Debtor made a payment of ₹9,376/- on 02.06.2021, which the Operational Creditor claimed was towards
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This case involves an appeal against an order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, which initiated Corporate Insolvency Resolution Proceedings (CIRP) against Exclusive Linen Fabrics Pvt. Ltd. based on an application filed by Shree Hari Yarns Pvt. Ltd. The appellant, Shitanshu Bipin Vora, the suspended director of the corporate debtor, challenges the NCLT's order, arguing that the alleged default amount includes an arbitrary interest component and that the application is not maintainable. The respondent, Shree Hari Yarns Pvt. Ltd., claims that the corporate debtor defaulted on a payment of ₹1,29,08,449/-, including principal and interest. The appellant contends that there was no agreement for the levy of interest and that the principal
…Shitanshu Bipin Vora, the suspended director of Exclusive Linen Fabrics Pvt. Ltd. (Corporate Debtor), appealed against the NCLT's order to initiate CIRP based on an application by Shree Hari Yarns Pvt. Ltd. (Operational Creditor). The Operational Creditor claimed a default of ₹1,29,08,449/-, including ₹88,16,301/- as principal and ₹40,92,148/- as interest. The Corporate Debtor argued that there was no agreement for interest, and the principal amount was below the ₹1 crore threshold for CIRP initiation. The invoices contained a clause stating 'interest will be charged on delayed payment @ 18%', but did not specify the time period (per annum or per month). The Corporate Debtor made a payment of ₹9,376/- on 02.06.2021, which the Operational Creditor claimed was towards
…The Adjudicating Authority (National Company…
The National Company Law Tribunal (NCLT)…