Bhopal, Jan. 1 -- The National Company Law Tribunal (NCLT), Indore Bench, has ruled that interest on an unsecured financial claim cannot be admitted merely because interest has been allowed in the claim of another unsecured creditor.

The tribunal clarified that interest is admissible only when there is a clear contractual or documentary basis recorded in the corporate debtor's books.

Case Background

The ruling arose from the Corporate Insolvency Resolution Process (CIRP) of Pushp Ratna Realty Pvt. Ltd., admitted into insolvency on October 16, 2024.

Socrus Bio Sciences Ltd. and Socrus Pharmaceutical Ltd., both claiming to be unsecured financial creditors, sought admission of principal and interest on their loans-Rs 4.97 crore (includin...