# In the matter of Verges Properties LLP

> NCLT judgment dated 2024-09-02. Citation: TCN-2024-NCLT-00700. Sudarshan Paper & Board Private Limited, the operational creditor, filed a company petition…

- **Court:** NCLT
- **Order date:** 2 Sept 2024
- **Citation:** TCN-2024-NCLT-00700
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/verges-properties-llp-ceb5ec16

## Summary

### Background

Sudarshan Paper & Board Private Limited, the operational creditor, filed a company petition against Verges Properties LLP, the corporate debtor, under Section 9 of the IBC, seeking initiation of the Corporate Insolvency Resolution Process. The operational creditor claimed that the corporate debtor defaulted in paying for the goods supplied. The principal amount due was Rs. 91,49,171/-, with an additional interest claim of Rs. 10,25,237/-. The total amount claimed was Rs. 1,01,74,408/-.

## Facts

Sudarshan Paper & Board Private Limited (Operational Creditor) supplied goods to Verges Properties LLP (Corporate Debtor). The Corporate Debtor defaulted on payments. The Operational Creditor filed a petition under Section 9 of the IBC. The principal amount due was Rs. 91,49,171/-. The Operational Creditor also claimed interest of Rs. 10,25,237/-, bringing the total claim to Rs. 1,01,74,408/-. The date of default claimed by the applicant is 27.05.2023. The Operational Creditor issued a Section 8 notice. The Corporate Debtor did not reply to the Section 8 notice. The interest was claimed based on invoices, but there was no specific agreement for interest. The respondent had deducted TDS on the interest amount.

## Issues and analysis

### Issue 1: Whether the interest claimed by the operational creditor can be included to meet the threshold …

**Ratio:** Interest cannot be awarded merely on the basis of a provision in the invoice if there is

…

**Reasoning:** The court relied on the judgment of the Hon'ble High Court at Karnataka in Jyothi Limited

…

**Interpretation:** The interpretation is that for interest to be included in the debt for the

…

**Application:** In this case, the court found that there was no agreement between Sudarshan

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Appellants:** Sudarshan Paper &…
- **Respondents:** Verges Properties…

## Timeline

- **2023-01-27 — Date of First…**: Date of the first invoice…
- **2023-05-27 — Date of D…**: Date of default claimed in Part 4 of the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/verges-properties-llp-ceb5ec16