https://www.taxtmi.com/caselaws?id=403339 Advance payments made under purchase orders for supply of goods did not constitute a financial debt under the Insolvency and Bankruptcy Code, 2016, because the transaction was a commercial procurement arrangement and not a disbursement by way of loan or against the time value of money. The existence of a commercial court decree did not change the underlying character of the claim. In the absence of any term showing repayment as a debt repayable over time with interest, the amount did not satisfy the requirements of financial debt under section 5(8). The Resolution Professional's treatment of the claim as otherwise was therefore found to be unsustainable. en-us Mon, 06 Jul 2020 00:00:00 +0530 Fri, 19 Mar 2021 18:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=403339 Advance payments made under purchase orders for supply of goods did not constitute a financial debt under the Insolvency and Bankruptcy Code, 2016, because the transaction was a commercial procurement arrangement and not a disbursement by way of loan or against the time value of money. The existence of a commercial court decree did not change the underlying character of the claim. In the absence of any term showing repayment as a debt repayable over time with interest, the amount did not satisfy the requirements of financial debt under section 5(8). The Resolution Professional's treatment of the claim as otherwise was therefore found to be unsustainable. Case-Laws Insolvency and Bankruptcy Mon, 06 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=403339