https://www.taxtmi.com/caselaws?id=460540 NCLAT Principal Bench dismissed appeal challenging admission of Section 7 application. Corporate debtor argued optionally convertible debentures were equity instruments, not debt, and raised procedural objections including natural justice violations and insufficient stamping. NCLAT held OCDs constitute financial debt under Section 5(8)(c), citing precedent. Court found no natural justice violation as corporate debtor received adequate hearing opportunity. Insufficient stamping did not invalidate evidence proving debt and default. Corporate debtor's status as going concern irrelevant to Section 7 admission. Appeal dismissed with costs. en-us Wed, 10 Jan 2024 00:00:00 +0530 Thu, 30 Jan 2025 15:40:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=460540 NCLAT Principal Bench dismissed appeal challenging admission of Section 7 application. Corporate debtor argued optionally convertible debentures were equity instruments, not debt, and raised procedural objections including natural justice violations and insufficient stamping. NCLAT held OCDs constitute financial debt under Section 5(8)(c), citing precedent. Court found no natural justice violation as corporate debtor received adequate hearing opportunity. Insufficient stamping did not invalidate evidence proving debt and default. Corporate debtor's status as going concern irrelevant to Section 7 admission. Appeal dismissed with costs. Case-Laws IBC Wed, 10 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=460540