https://www.taxtmi.com/caselaws?id=403023 An inter-corporate deposit with agreed interest and treatment in the accounts as borrowing was characterised as financial debt because it involved disbursal against consideration for the time value of money. On that basis, a Section 7 insolvency application by a financial creditor did not require a Section 8 demand notice, which applies to operational debt. Limitation was also rejected because account extracts and admitted payments showed continuing acknowledgment and part-payment within the relevant period, and the pleaded default date brought the claim within time. The insolvency application therefore survived both objections. en-us Tue, 12 Jan 2021 00:00:00 +0530 Mon, 18 Jan 2021 13:11:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403023 An inter-corporate deposit with agreed interest and treatment in the accounts as borrowing was characterised as financial debt because it involved disbursal against consideration for the time value of money. On that basis, a Section 7 insolvency application by a financial creditor did not require a Section 8 demand notice, which applies to operational debt. Limitation was also rejected because account extracts and admitted payments showed continuing acknowledgment and part-payment within the relevant period, and the pleaded default date brought the claim within time. The insolvency application therefore survived both objections. Case-Laws Insolvency and Bankruptcy Tue, 12 Jan 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403023