https://www.taxtmi.com/caselaws?id=770308 NCLAT set aside the Adjudicating Authority's order admitting Section 7 application and closed the CIRP against the Corporate Debtor. The tribunal held that amounts transferred by the financial creditor were consideration for purchase of assets, not financial debt within Section 5(8) of I&B Code. Despite the agreement containing 2% monthly interest clause, the transaction's real nature was sale-purchase of plot at industrial area. Following SC precedent in Anuj Jain case, debt must be disbursed for time value of money to qualify as financial debt. Asset purchase consideration cannot constitute financial debt. en-us Fri, 02 May 2025 00:00:00 +0530 Fri, 09 May 2025 09:12:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770308 NCLAT set aside the Adjudicating Authority's order admitting Section 7 application and closed the CIRP against the Corporate Debtor. The tribunal held that amounts transferred by the financial creditor were consideration for purchase of assets, not financial debt within Section 5(8) of I&B Code. Despite the agreement containing 2% monthly interest clause, the transaction's real nature was sale-purchase of plot at industrial area. Following SC precedent in Anuj Jain case, debt must be disbursed for time value of money to qualify as financial debt. Asset purchase consideration cannot constitute financial debt. Case-Laws IBC Fri, 02 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770308