https://www.taxtmi.com/caselaws?id=427543 A claim arising from project agreements was held not to constitute financial debt because it lacked disbursal against consideration for the time value of money. The stipulated interest or penal consequences were treated as compensation or liquidated damages for alleged contractual breach, not as borrowing, and the residual limb of financial debt was inapplicable because the transaction did not have the commercial effect of borrowing. On that basis, the claimant was not a financial creditor and the resolution professional's rejection of the claim was upheld. The delay in examining the claim did not render the process unlawful, as the verification period was directory and the claim had been lodged after the cut-off date. en-us Fri, 09 Sep 2022 00:00:00 +0530 Mon, 12 Sep 2022 10:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=427543 A claim arising from project agreements was held not to constitute financial debt because it lacked disbursal against consideration for the time value of money. The stipulated interest or penal consequences were treated as compensation or liquidated damages for alleged contractual breach, not as borrowing, and the residual limb of financial debt was inapplicable because the transaction did not have the commercial effect of borrowing. On that basis, the claimant was not a financial creditor and the resolution professional's rejection of the claim was upheld. The delay in examining the claim did not render the process unlawful, as the verification period was directory and the claim had been lodged after the cut-off date. Case-Laws Insolvency and Bankruptcy Fri, 09 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=427543