Petition dismissed; file fresh representation on alleged illegal deductions and GST-inclusive rate recomputation - authorities must decide within thre...
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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