https://www.taxtmi.com/caselaws?id=429015 A claim can sustain a Section 7 insolvency application only if there is a disbursement to the corporate debtor against consideration for the time value of money. Here, the memorandum of undertaking was executed with a different entity, and the corporate debtor was not a party to it; a mere reference to setting up an IT park did not create borrowing or disbursement against the corporate debtor. The attachment order under the Haryana depositor-protection law also did not convert the claim into financial debt. The Section 7 application was therefore not maintainable, and rejection of the insolvency invocation was affirmed. en-us Tue, 30 Aug 2022 00:00:00 +0530 Sat, 15 Oct 2022 17:42:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=429015 A claim can sustain a Section 7 insolvency application only if there is a disbursement to the corporate debtor against consideration for the time value of money. Here, the memorandum of undertaking was executed with a different entity, and the corporate debtor was not a party to it; a mere reference to setting up an IT park did not create borrowing or disbursement against the corporate debtor. The attachment order under the Haryana depositor-protection law also did not convert the claim into financial debt. The Section 7 application was therefore not maintainable, and rejection of the insolvency invocation was affirmed. Case-Laws Insolvency and Bankruptcy Tue, 30 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=429015