Case Law Analysis
|National Company Law Appellate Tribunal
IBC Section 9 | Interest on Invoices Not Part of Operational Debt Without Express Contractual Agreement : NCLAT
The NCLAT has ruled that interest charged in invoices cannot be included in the operational debt threshold under Section 9 of the IBC unless there is a clear contractual provision or established past practice of accepting such interest. This sets a critical precedent for operational creditors relying on invoice terms alone, requiring explicit consent for interest to count toward the ₹1 lakh threshold.