https://www.taxtmi.com/caselaws?id=459083 NCLAT Principal Bench dismissed appellant's challenge to classification of debt as financial rather than operational. Corporate debtor procured raw materials through payments made by respondent at debtor's instructions. Tribunal held that disbursement need not be directly to corporate debtor - payments made on behalf or at instructions constitute financial debt. Working capital assistance, including raw material payments, cannot be treated as operational debt. Business agreements between promoters, corporate debtor and respondent clearly established financial debt arrangement with debtor's consent, despite appellant's contention of separate promoter-respondent agreement. Adjudicating Authority's order correctly identified financial debt and default. en-us Tue, 02 Jan 2024 00:00:00 +0530 Fri, 29 Nov 2024 18:59:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459083 NCLAT Principal Bench dismissed appellant's challenge to classification of debt as financial rather than operational. Corporate debtor procured raw materials through payments made by respondent at debtor's instructions. Tribunal held that disbursement need not be directly to corporate debtor - payments made on behalf or at instructions constitute financial debt. Working capital assistance, including raw material payments, cannot be treated as operational debt. Business agreements between promoters, corporate debtor and respondent clearly established financial debt arrangement with debtor's consent, despite appellant's contention of separate promoter-respondent agreement. Adjudicating Authority's order correctly identified financial debt and default. Case-Laws IBC Tue, 02 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459083