https://www.taxtmi.com/caselaws?id=447905 The NCLAT held that trade receivables discounted by financers on an M1 platform constituted operational debt, not financial debt. The Corporate Debtor was liable to pay financers after suppliers' invoices were discounted, but since no disbursement was made directly to the Corporate Debtor, the transaction arose from sale of goods rather than financial lending. The NCLAT distinguished the Supreme Court's Orator Marketing judgment, noting it involved actual loan advancement. The Adjudicating Authority's classification of the claim as operational debt was upheld, and the appeal was dismissed. en-us Fri, 05 Jan 2024 00:00:00 +0530 Mon, 08 Jan 2024 09:14:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447905 The NCLAT held that trade receivables discounted by financers on an M1 platform constituted operational debt, not financial debt. The Corporate Debtor was liable to pay financers after suppliers' invoices were discounted, but since no disbursement was made directly to the Corporate Debtor, the transaction arose from sale of goods rather than financial lending. The NCLAT distinguished the Supreme Court's Orator Marketing judgment, noting it involved actual loan advancement. The Adjudicating Authority's classification of the claim as operational debt was upheld, and the appeal was dismissed. Case-Laws Insolvency and Bankruptcy Fri, 05 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447905