https://www.taxtmi.com/caselaws?id=407396 A debenture-based claim was treated as a financial debt because the trust deed, payment records, admissions of delay and information utility entries showed non-payment of coupon amounts and redemption instalments, establishing default for section 7 admission. The Tribunal held that, at the admission stage, the adjudicating authority must only be satisfied from records and other reliable evidence that a debt is due and default has occurred. It also rejected the argument that initiation required consent of 51% of debenture holders, finding that the trust deed did not make declaration of default contingent on that approval and that the contractual mechanism treated non-response as deemed consent. The application was therefore maintainable. en-us Fri, 30 Apr 2021 00:00:00 +0530 Mon, 10 May 2021 08:50:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=407396 A debenture-based claim was treated as a financial debt because the trust deed, payment records, admissions of delay and information utility entries showed non-payment of coupon amounts and redemption instalments, establishing default for section 7 admission. The Tribunal held that, at the admission stage, the adjudicating authority must only be satisfied from records and other reliable evidence that a debt is due and default has occurred. It also rejected the argument that initiation required consent of 51% of debenture holders, finding that the trust deed did not make declaration of default contingent on that approval and that the contractual mechanism treated non-response as deemed consent. The application was therefore maintainable. Case-Laws Insolvency and Bankruptcy Fri, 30 Apr 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=407396