https://www.taxtmi.com/caselaws?id=398387 Non-redemption of redeemable preference shares, by itself, does not create a financial debt under the Insolvency and Bankruptcy Code, 2016. The Tribunal held that a holder of cumulative non-convertible redeemable preference shares remains a shareholder, and the mere failure to redeem those shares does not convert the claim into debt or make the holder a financial creditor. It therefore rejected the argument that the transaction had the commercial effect of borrowing for section 7 purposes. The claim was treated as one arising from share capital and redemption obligations under company law, not as an ordinary debt enforceable in insolvency. en-us Mon, 10 Feb 2020 00:00:00 +0530 Tue, 15 Sep 2020 11:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=398387 Non-redemption of redeemable preference shares, by itself, does not create a financial debt under the Insolvency and Bankruptcy Code, 2016. The Tribunal held that a holder of cumulative non-convertible redeemable preference shares remains a shareholder, and the mere failure to redeem those shares does not convert the claim into debt or make the holder a financial creditor. It therefore rejected the argument that the transaction had the commercial effect of borrowing for section 7 purposes. The claim was treated as one arising from share capital and redemption obligations under company law, not as an ordinary debt enforceable in insolvency. Case-Laws Insolvency and Bankruptcy Mon, 10 Feb 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=398387