https://www.taxtmi.com/caselaws?id=376171 Financial debt may arise where a shareholder or promoter-director pays amounts on behalf of a corporate debtor to discharge its loan liability, provided the underlying transaction carries the time value of money. Documentary evidence, including an agreement and bank records, established the corporate debtor's repayment liability, breach and default. Non-signature of one applicant to the agreement and the presence of an arbitration clause did not affect maintainability of the section 7 insolvency application. Resignation of the other applicant from directorship was accepted. The applicants qualified as financial creditors, and the insolvency application was maintainable. en-us Thu, 03 Jan 2019 00:00:00 +0530 Wed, 14 Aug 2019 11:56:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=376171 Financial debt may arise where a shareholder or promoter-director pays amounts on behalf of a corporate debtor to discharge its loan liability, provided the underlying transaction carries the time value of money. Documentary evidence, including an agreement and bank records, established the corporate debtor's repayment liability, breach and default. Non-signature of one applicant to the agreement and the presence of an arbitration clause did not affect maintainability of the section 7 insolvency application. Resignation of the other applicant from directorship was accepted. The applicants qualified as financial creditors, and the insolvency application was maintainable. Case-Laws Insolvency and Bankruptcy Thu, 03 Jan 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=376171