On April 16, 2025, a 3 (three) judge bench of the National Company Law Appellate Tribunal, New Delhi (“NCLAT”) in Shitanshu Bipin Vora vs. Shree Hari Yarns Pvt. Ltd. & Anr. held that clauses of unilateral interest in invoices without a formal agreement, cannot inflate claims of operational debt to meet the threshold of INR 1,00,00,000 (Indian Rupees one crore) under Section 4 of the Insolvency and Bankruptcy Code, 2016 (“IBC”).

On February 21, 2024, the Hon’ble National Company Law Appellate Tribunal, Chennai (“NCLAT”) in the case of Kiran Martin Gulla RP of Vardharaja Foods Pvt. Ltd. held that when an extension to complete the corporate insolvency resolution process (“CIRP”) is granted by the Adjudicating Authority, then such period will be calculated form the date on which the Adjudicating Authority passes such an order.

Brief Facts