https://www.taxtmi.com/caselaws?id=399140 A claimed advance arising from ongoing customer-supplier transactions was not treated as a financial debt under the Insolvency and Bankruptcy Code because there was no loan documentation, no separate accounting as an unsecured loan, and no material showing disbursal against consideration for the time value of money. The transaction was found to reflect commercial supply dealings rather than borrowing, so the essential ingredients of section 5(8) were not proved. On that basis, the section 7 insolvency application was held not maintainable and was rejected. en-us Tue, 28 Jul 2020 00:00:00 +0530 Mon, 05 Oct 2020 07:12:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=399140 A claimed advance arising from ongoing customer-supplier transactions was not treated as a financial debt under the Insolvency and Bankruptcy Code because there was no loan documentation, no separate accounting as an unsecured loan, and no material showing disbursal against consideration for the time value of money. The transaction was found to reflect commercial supply dealings rather than borrowing, so the essential ingredients of section 5(8) were not proved. On that basis, the section 7 insolvency application was held not maintainable and was rejected. Case-Laws Insolvency and Bankruptcy Tue, 28 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=399140