https://www.taxtmi.com/caselaws?id=296346 A Section 7 insolvency application was found to be collusive because the transaction pattern did not show a genuine financial debt or default. The Tribunal examined the applicant's business, the partnership deed, and the course of dealings, noting that the advances were short-lived, often squared up within days, and aligned with the corporate debtor's efforts to secure banking facilities. On that material, it held there was no satisfactory basis to treat the advances as bona fide lending for business purposes and dismissed the petition. en-us Wed, 07 Oct 2020 00:00:00 +0530 Thu, 15 Jul 2021 18:03:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=296346 A Section 7 insolvency application was found to be collusive because the transaction pattern did not show a genuine financial debt or default. The Tribunal examined the applicant's business, the partnership deed, and the course of dealings, noting that the advances were short-lived, often squared up within days, and aligned with the corporate debtor's efforts to secure banking facilities. On that material, it held there was no satisfactory basis to treat the advances as bona fide lending for business purposes and dismissed the petition. Case-Laws Insolvency and Bankruptcy Wed, 07 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=296346