https://www.taxtmi.com/caselaws?id=446887 NCLAT dismissed the appeal challenging rejection of Section 7 application for initiation of CIRP. The appellant claimed financial creditor status based on profit-sharing loan given to respondent. NCLAT held that the transaction was a joint venture agreement for property development with 25:75 resource sharing ratio, not financial debt. The arrangement involved investment for profit-sharing rather than disbursement for time value of money as required under Section 5(8) IBC. Since appellant was collaborator, not financial creditor under Section 5(7) IBC, Section 7 application was not maintainable. Adjudicating Authority's findings upheld. en-us Wed, 13 Dec 2023 00:00:00 +0530 Wed, 13 Dec 2023 17:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=446887 NCLAT dismissed the appeal challenging rejection of Section 7 application for initiation of CIRP. The appellant claimed financial creditor status based on profit-sharing loan given to respondent. NCLAT held that the transaction was a joint venture agreement for property development with 25:75 resource sharing ratio, not financial debt. The arrangement involved investment for profit-sharing rather than disbursement for time value of money as required under Section 5(8) IBC. Since appellant was collaborator, not financial creditor under Section 5(7) IBC, Section 7 application was not maintainable. Adjudicating Authority's findings upheld. Case-Laws Insolvency and Bankruptcy Wed, 13 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=446887