https://www.taxtmi.com/caselaws?id=312213 Funds raised under a share subscription and shareholders arrangement, supported by a term sheet and later crystallised in consent terms and a consent award, were treated as financial debt because the underlying transaction had the commercial effect of borrowing and contemplated an exit with return on investment. The consent award did not create a separate claim divorced from the original commercial arrangement; it merely crystallised the same liability. Accordingly, an arbitral consent award does not, by itself, take the claim outside the scope of financial debt where the statutory ingredients are otherwise satisfied, and default under that award can support a Section 7 insolvency application. en-us Fri, 24 Nov 2023 00:00:00 +0530 Tue, 06 Feb 2024 23:10:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312213 Funds raised under a share subscription and shareholders arrangement, supported by a term sheet and later crystallised in consent terms and a consent award, were treated as financial debt because the underlying transaction had the commercial effect of borrowing and contemplated an exit with return on investment. The consent award did not create a separate claim divorced from the original commercial arrangement; it merely crystallised the same liability. Accordingly, an arbitral consent award does not, by itself, take the claim outside the scope of financial debt where the statutory ingredients are otherwise satisfied, and default under that award can support a Section 7 insolvency application. Case-Laws Companies Law Fri, 24 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312213