https://www.taxtmi.com/caselaws?id=396533 Amounts advanced by a director were not proved to be financial debt because no prior borrowing agreement or contractual terms established a lending transaction, and balance-sheet entries alone did not create financial creditor status. The petition was also defective because the demand notice treated the claim as operational debt while the application proceeded as a financial debt, creating a fundamental inconsistency going to maintainability. As the alleged liability was not shown to be clear and undisputed, and the corporate debtor was a continuing concern with assets and operations, initiation of CIRP was not justified and the application failed. en-us Tue, 28 Jan 2020 00:00:00 +0530 Thu, 09 Jul 2020 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=396533 Amounts advanced by a director were not proved to be financial debt because no prior borrowing agreement or contractual terms established a lending transaction, and balance-sheet entries alone did not create financial creditor status. The petition was also defective because the demand notice treated the claim as operational debt while the application proceeded as a financial debt, creating a fundamental inconsistency going to maintainability. As the alleged liability was not shown to be clear and undisputed, and the corporate debtor was a continuing concern with assets and operations, initiation of CIRP was not justified and the application failed. Case-Laws Insolvency and Bankruptcy Tue, 28 Jan 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=396533