https://www.taxtmi.com/caselaws?id=768756 NCLAT dismissed the appeal and upheld rejection of the Section 7 application. The tribunal held the allotted cumulative redeemable preference shares (CRPS) constituted preferential equity under s.43 and did not create a debt capable of triggering insolvency proceedings. Because the company never earned profits, declared dividends, or raised fresh issue proceeds for redemption, the CRPS were not redeemable and no default had arisen. Parties' rights were confined to the written allotment correspondence, and the appellant could not rely on extraneous evidence to convert the shareholding into a creditor claim. en-us Wed, 09 Apr 2025 00:00:00 +0530 Thu, 28 Aug 2025 14:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768756 NCLAT dismissed the appeal and upheld rejection of the Section 7 application. The tribunal held the allotted cumulative redeemable preference shares (CRPS) constituted preferential equity under s.43 and did not create a debt capable of triggering insolvency proceedings. Because the company never earned profits, declared dividends, or raised fresh issue proceeds for redemption, the CRPS were not redeemable and no default had arisen. Parties' rights were confined to the written allotment correspondence, and the appellant could not rely on extraneous evidence to convert the shareholding into a creditor claim. Case-Laws IBC Wed, 09 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768756