https://www.taxtmi.com/caselaws?id=762365 NCLAT Principal Bench set aside CIRP admission under Section 7, finding collusion between creditor and debtor companies. The tribunal determined that a common director holding 21.77% and 66.66% shares in creditor companies and 33.34% in debtor company constituted related parties under Section 5(24)(m). Citing Phoenix ARC precedent, amounts disbursed by related parties don't qualify as financial debt. The tribunal found creditor's petition was collusive rather than for genuine insolvency resolution, as evidenced by shared directorship and financial statements showing related party borrowings. Appeal allowed, CIRP order set aside. en-us Thu, 28 Nov 2024 00:00:00 +0530 Fri, 29 Nov 2024 11:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762365 NCLAT Principal Bench set aside CIRP admission under Section 7, finding collusion between creditor and debtor companies. The tribunal determined that a common director holding 21.77% and 66.66% shares in creditor companies and 33.34% in debtor company constituted related parties under Section 5(24)(m). Citing Phoenix ARC precedent, amounts disbursed by related parties don't qualify as financial debt. The tribunal found creditor's petition was collusive rather than for genuine insolvency resolution, as evidenced by shared directorship and financial statements showing related party borrowings. Appeal allowed, CIRP order set aside. Case-Laws IBC Thu, 28 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762365