https://www.taxtmi.com/caselaws?id=392815 Section 43 of the Insolvency and Bankruptcy Code was applied to hold that the impugned mortgage and re-mortgage transactions were preferential, as they were created for the benefit of lenders on account of antecedent liability, fell within the look-back period for a related party, and were not in the ordinary course of business or financial affairs of the corporate debtor. The Court also held that a third-party mortgage securing another borrower's debt creates a security interest, but does not by itself make the mortgagee a financial creditor of the corporate debtor, because financial debt requires disbursal against the time value of money. The avoidance order was restored and the lenders' claims as financial creditors were rejected. en-us Wed, 26 Feb 2020 00:00:00 +0530 Mon, 07 Jul 2025 13:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=392815 Section 43 of the Insolvency and Bankruptcy Code was applied to hold that the impugned mortgage and re-mortgage transactions were preferential, as they were created for the benefit of lenders on account of antecedent liability, fell within the look-back period for a related party, and were not in the ordinary course of business or financial affairs of the corporate debtor. The Court also held that a third-party mortgage securing another borrower's debt creates a security interest, but does not by itself make the mortgagee a financial creditor of the corporate debtor, because financial debt requires disbursal against the time value of money. The avoidance order was restored and the lenders' claims as financial creditors were rejected. Case-Laws IBC Wed, 26 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=392815