https://www.taxtmi.com/caselaws?id=299636 An advance will qualify as a financial debt under insolvency law only if it is disbursed against consideration for the time value of money or otherwise has the commercial effect of borrowing; on the facts, no reliable material showed agreed interest, TDS deduction toward interest, or other indicia of such a debt, so the claim failed. A Section 7 application must also be filed within limitation; the application was brought more than three years after the treated date of default, and the balance-sheet entry was not accepted as a valid acknowledgment to extend time, so the right to apply under Article 137 had expired. The insolvency petition was held not maintainable and was dismissed. en-us Mon, 28 Sep 2020 00:00:00 +0530 Fri, 24 Dec 2021 08:45:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=299636 An advance will qualify as a financial debt under insolvency law only if it is disbursed against consideration for the time value of money or otherwise has the commercial effect of borrowing; on the facts, no reliable material showed agreed interest, TDS deduction toward interest, or other indicia of such a debt, so the claim failed. A Section 7 application must also be filed within limitation; the application was brought more than three years after the treated date of default, and the balance-sheet entry was not accepted as a valid acknowledgment to extend time, so the right to apply under Article 137 had expired. The insolvency petition was held not maintainable and was dismissed. Case-Laws Insolvency and Bankruptcy Mon, 28 Sep 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=299636