https://www.taxtmi.com/caselaws?id=759693 The NCLAT dismissed an appeal challenging rejection of CIRP initiation against a corporate debtor. The appellate tribunal held that no financial debt existed as there was no loan agreement establishing terms, interest rates, or payment schedules between parties. Only ledger accounts and TDS certificates were provided as evidence. The tribunal found the debt lacked consideration for time value of money, essential for qualifying as financial debt. Since the appellant failed to establish status as financial creditor and the corporate debtor claimed full payment of principal and interest, the AA's rejection was upheld. The tribunal noted it is not a debt recovery forum and directed the appellant to pursue any balance claims through appropriate forums. en-us Mon, 09 Sep 2024 00:00:00 +0530 Mon, 07 Oct 2024 09:08:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=759693 The NCLAT dismissed an appeal challenging rejection of CIRP initiation against a corporate debtor. The appellate tribunal held that no financial debt existed as there was no loan agreement establishing terms, interest rates, or payment schedules between parties. Only ledger accounts and TDS certificates were provided as evidence. The tribunal found the debt lacked consideration for time value of money, essential for qualifying as financial debt. Since the appellant failed to establish status as financial creditor and the corporate debtor claimed full payment of principal and interest, the AA's rejection was upheld. The tribunal noted it is not a debt recovery forum and directed the appellant to pursue any balance claims through appropriate forums. Case-Laws IBC Mon, 09 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=759693