Electronic WhatsApp evidence without authentication or independent corroboration cannot sustain an unexplained-investment addition based on third-part...
Mutual current-account transactions excluded from deemed dividend treatment where no fresh borrowing arose; unsupported unsecured-loan addition also f...
Treatment of a creditors claim as contingent liability versus classification as an unsecured creditor determined whether the Adjudicating Authority must admit a Section 9 petition; the Authority is obliged to decide existence of debt, default and any pre-existing dispute, and if debt and default are proved with no dispute, admit the petition. Contingent liabilities require crystallisation before becoming due, a process not shown by the respondent, undermining its contingent classification; binding effect of a BIFR-sanctioned rehabilitation scheme on unsecured creditors does not apply where the claim remained contingent. Appeal allowed and matter restored for fresh adjudication on debt, default and dispute.
Treatment of a creditors claim as contingent liability versus classification as an unsecured creditor determined whether the Adjudicating Authority must admit a Section 9 petition; the Authority is obliged to decide existence of debt, default and any pre-existing dispute, and if debt and default are proved with no dispute, admit the petition. Contingent liabilities require crystallisation before becoming due, a process not shown by the respondent, undermining its contingent classification; binding effect of a BIFR-sanctioned rehabilitation scheme on unsecured creditors does not apply where the claim remained contingent. Appeal allowed and matter restored for fresh adjudication on debt, default and dispute.
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