The National Company Law Tribunal (NCLT), Mumbai Bench comprising of Mr. Kishore Vemulapalli (Judicial Member) and Mr. Prabhat Kumar (Technical Member), dismissed a petition filed in TCL Cables Pvt. Ltd. vs. Shapoorji Pallonji & Company Pvt. Ltd. by TCL Cables Pvt. Ltd. (Operational Creditor) for initiation of Corporate Insolvency Resolution Process (CIRP) against Shapoorji Pallonji & Company Pvt. Ltd. (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) for a default amount of Rs. 13.73 Crores.
The NCLT Mumbai Bench dismissed the petition for initiation of CIRP against the Corporate Debtor and held that a petition under Section 9 of the Code cannot lie merely for the recovery of interest component.
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