https://www.taxtmi.com/caselaws?id=411556 A Section 7 Insolvency and Bankruptcy Code claim cannot proceed unless reliable material shows a legally enforceable financial debt due from the corporate debtor. The Tribunal found that the loan was transferred to the managing director's personal account, the mortgage deed reflected personal borrowing secured by his individual property, and the record did not prove disbursement to the company. It also treated the unregistered memorandum of understanding as doubtful in genuineness and unsafe to rely on in summary insolvency proceedings. As debt and default against the corporate debtor were not established, the document could not support initiation of insolvency action. en-us Fri, 27 Aug 2021 00:00:00 +0530 Sat, 28 Aug 2021 16:02:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=411556 A Section 7 Insolvency and Bankruptcy Code claim cannot proceed unless reliable material shows a legally enforceable financial debt due from the corporate debtor. The Tribunal found that the loan was transferred to the managing director's personal account, the mortgage deed reflected personal borrowing secured by his individual property, and the record did not prove disbursement to the company. It also treated the unregistered memorandum of understanding as doubtful in genuineness and unsafe to rely on in summary insolvency proceedings. As debt and default against the corporate debtor were not established, the document could not support initiation of insolvency action. Case-Laws Insolvency and Bankruptcy Fri, 27 Aug 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=411556