https://www.taxtmi.com/caselaws?id=414407 An unstamped, undated and unregistered memorandum of understanding could not be relied upon to sustain insolvency proceedings, because an inadmissible instrument cannot found a section 7 claim. A refundable security deposit paid by a separate third party did not establish that the applicant itself was a financial creditor, and the deposit was not shown to be disbursed as a loan or borrowing with time value of money; it therefore was not a financial debt. On that basis, no actionable default was proved, and dishonour of the respondent's cheques did not by itself create financial debt or default for section 7 purposes. en-us Wed, 06 Oct 2021 00:00:00 +0530 Mon, 08 Nov 2021 07:00:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=414407 An unstamped, undated and unregistered memorandum of understanding could not be relied upon to sustain insolvency proceedings, because an inadmissible instrument cannot found a section 7 claim. A refundable security deposit paid by a separate third party did not establish that the applicant itself was a financial creditor, and the deposit was not shown to be disbursed as a loan or borrowing with time value of money; it therefore was not a financial debt. On that basis, no actionable default was proved, and dishonour of the respondent's cheques did not by itself create financial debt or default for section 7 purposes. Case-Laws Insolvency and Bankruptcy Wed, 06 Oct 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=414407