https://www.taxtmi.com/caselaws?id=300413 A claim based on a settlement arrangement and alleged non-payment of refund cheques and assured returns did not constitute financial debt under the Insolvency and Bankruptcy Code, because financial debt requires disbursal against the consideration for time value of money. Since the unit had been withdrawn and the claimant was no longer an allottee, the amount fell outside the statutory definition and amounted only to a contractual claim. Insolvency proceedings could not be used as a recovery mechanism for enforcing settlement obligations, so the applicant was not a financial creditor and section 7 proceedings were not maintainable. en-us Tue, 20 Oct 2020 00:00:00 +0530 Mon, 31 Jan 2022 21:09:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=300413 A claim based on a settlement arrangement and alleged non-payment of refund cheques and assured returns did not constitute financial debt under the Insolvency and Bankruptcy Code, because financial debt requires disbursal against the consideration for time value of money. Since the unit had been withdrawn and the claimant was no longer an allottee, the amount fell outside the statutory definition and amounted only to a contractual claim. Insolvency proceedings could not be used as a recovery mechanism for enforcing settlement obligations, so the applicant was not a financial creditor and section 7 proceedings were not maintainable. Case-Laws Insolvency and Bankruptcy Tue, 20 Oct 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=300413