https://www.taxtmi.com/caselaws?id=762248 NCLAT Principal Bench dismissed appeals challenging rejection of Section 7 applications. The court held that share application money deposited by appellants with corporate debtor did not constitute financial debt under Section 5(8) of IBC. Key findings: financial debt requires disbursal against consideration for time value of money; share application money not expressly covered under Section 5(8) sub-clauses; no valid concluded agreement between parties for share allotment existed; amounts not advanced pursuant to private placement offer under Companies Act 2013; CADR Rules inapplicable without proof of compliant private placement offer. Appeals lacked merit and were dismissed. en-us Tue, 26 Nov 2024 00:00:00 +0530 Thu, 28 Nov 2024 07:48:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762248 NCLAT Principal Bench dismissed appeals challenging rejection of Section 7 applications. The court held that share application money deposited by appellants with corporate debtor did not constitute financial debt under Section 5(8) of IBC. Key findings: financial debt requires disbursal against consideration for time value of money; share application money not expressly covered under Section 5(8) sub-clauses; no valid concluded agreement between parties for share allotment existed; amounts not advanced pursuant to private placement offer under Companies Act 2013; CADR Rules inapplicable without proof of compliant private placement offer. Appeals lacked merit and were dismissed. Case-Laws IBC Tue, 26 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762248