https://www.taxtmi.com/caselaws?id=416696 A director's advance to a company may constitute financial debt where board minutes, ledgers and balance sheets record the disbursements, the company repeatedly acknowledges repayment with interest, and correspondence confirms the liability. On those facts, the transaction has the commercial effect of borrowing rather than a mere capital contribution, making the director a financial creditor. Where repayment has become due and the company does not dispute the debt in substance but only seeks time, the record establishes default and satisfies the section 7 threshold for insolvency admission. en-us Mon, 03 Jan 2022 00:00:00 +0530 Thu, 06 Jan 2022 07:11:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=416696 A director's advance to a company may constitute financial debt where board minutes, ledgers and balance sheets record the disbursements, the company repeatedly acknowledges repayment with interest, and correspondence confirms the liability. On those facts, the transaction has the commercial effect of borrowing rather than a mere capital contribution, making the director a financial creditor. Where repayment has become due and the company does not dispute the debt in substance but only seeks time, the record establishes default and satisfies the section 7 threshold for insolvency admission. Case-Laws Insolvency and Bankruptcy Mon, 03 Jan 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=416696