Co-operative credit society deduction on bank deposit interest upheld where funds were business funds and income remained attributable to member credi...
NCLAT dismissed the appeal and upheld the AA's rejection of a Section 7 IBC petition seeking admission of a Rs 1 crore claim as financial debt. The Tribunal affirmed that disbursal, time-value and commercial effect can constitute financial debt even if interest is not charged and absence of a written contract is not determinative. However, the AA correctly found that default and exigibility of the debt were not established: the asserted date of default tied to completion of a project was disputed and the debt was not shown to be due and payable. No infirmity was found in the impugned order; the appeal was dismissed.
NCLAT dismissed the appeal and upheld the AA's rejection of a Section 7 IBC petition seeking admission of a Rs 1 crore claim as financial debt. The Tribunal affirmed that disbursal, time-value and commercial effect can constitute financial debt even if interest is not charged and absence of a written contract is not determinative. However, the AA correctly found that default and exigibility of the debt were not established: the asserted date of default tied to completion of a project was disputed and the debt was not shown to be due and payable. No infirmity was found in the impugned order; the appeal was dismissed.
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