https://www.taxtmi.com/caselaws?id=390010 Investor funds advanced under share subscription, amendment and settlement arrangements were treated as financial debt because the agreements provided for repayment of contributed sums with internal rate of return and interest on default, and the settlement terms acknowledged refundable outstanding amounts. The transaction was found to have the commercial effect of borrowing, with disbursal against consideration for the time value of money, so the applicant was regarded as a financial creditor. On that basis, once default and the interim resolution professional's consent were shown, the requirements for admission of the section 7 application were satisfied and insolvency proceedings could be commenced with the statutory moratorium and related consequences. en-us Tue, 27 Aug 2019 00:00:00 +0530 Sat, 21 Dec 2019 10:32:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=390010 Investor funds advanced under share subscription, amendment and settlement arrangements were treated as financial debt because the agreements provided for repayment of contributed sums with internal rate of return and interest on default, and the settlement terms acknowledged refundable outstanding amounts. The transaction was found to have the commercial effect of borrowing, with disbursal against consideration for the time value of money, so the applicant was regarded as a financial creditor. On that basis, once default and the interim resolution professional's consent were shown, the requirements for admission of the section 7 application were satisfied and insolvency proceedings could be commenced with the statutory moratorium and related consequences. Case-Laws Insolvency and Bankruptcy Tue, 27 Aug 2019 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=390010