NCLT Mumbai dismissed an insolvency petition filed by Johnson Screens against Shapoorji Pallonji over a Rs 91.49 lakh principal debt.
The tribunal ruled that a unilateral 12% interest charge of Rs 13.98 lakh in invoices could not be included to cross the Rs 1 crore threshold.
The foundational purchase orders contained no clause for interest on delayed payments, making the interest claim legally unsustainable.
The petition was deemed a recovery action, not a genuine insolvency resolution process, and was rejected for not meeting statutory requirements.