# In the matter of Shivani Enterprises vs. S Square Cargo Movers Private Limited

> NCLAT judgment dated 2026-04-17. Citation: TCN-2026-NCLAT-00120. M/S. Shivani Enterprises filed an appeal against the order dated 16.01.2026 passed by the…

- **Court:** NCLAT
- **Order date:** 17 Apr 2026
- **Citation:** TCN-2026-NCLAT-00120
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/shivani-enterprises-vs-s-square-cargo-movers-private-limited-9ed8e3da

## Summary

### Background

M/S. Shivani Enterprises filed an appeal against the order dated 16.01.2026 passed by the Adjudicating Authority, National Company Law Tribunal, Cuttack Bench, which dismissed their Section 9 application under the Insolvency and Bankruptcy Code, 2016.

## Facts

M/S. Shivani Enterprises (Operational Creditor) supplied goods to M/S. S Square Cargo Movers Private Limited (Corporate Debtor).

Invoices raised by the Operational Creditor aggregated to Rs. 1,52,02,816/-.

The Corporate Debtor made part-payments of Rs. 48,58,837/-, leaving a principal amount of Rs. 70,54,167/- outstanding.

The invoices stipulated a levy of compounded interest @3% p.a. on delayed payments.

A Section 8 demand notice was issued to the Corporate Debtor on 03.03.2025 by the Operational Creditor.

The Adjudicating Authority dismissed the Section 9 application filed by the Operational Creditor.

The Corporate Debtor acknowledged their outstanding liability without disputing the principal amount in their reply to the Section 8 Demand Notice.

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## Issues and analysis

### Issue 1: Whether the interest amount claimed by the operational creditor can be included in the operational …

**Ratio:** The interest amount cannot be included in the operational debt if it is not backed by a

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**Reasoning:** The Tribunal relied on previous judgments, including Prashat Agarwal Vs. Vikash

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**Interpretation:** The judgment interprets Section 4 of the IBC to mean that the threshold limit

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**Application:** In this case, since there was no contractual agreement for interest and no past

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** M/S. SHIVANI…
- **Respondents:** M/S. S SQUARE…
- **Advocates:** Amir Ba…; Milan Sing…; +1 more

## Timeline

- **16.01.2026 — Impugned Ord…**: Date of the order passed by the Adjudicating Authority, National Company Law Tribunal,…
- **03.03.2025 — Section 8 Dema…**: Date on which a Section 8 demand notice was issued to the Corporate Debtor by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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