https://www.taxtmi.com/caselaws?id=774642 The SC dismissed an appeal challenging NCLAT's order allowing initiation of CIRP under Section 7 of IBC. The dispute concerned whether credit facility provided by appellant to respondent-corporate debtor constituted financial debt under Section 5(8) of IBC. NCLAT held that fund infusion by appellant constituted financial debt, making appellant a financial creditor entitled to file Section 7 application. The court ruled that absence of interest clause does not preclude a transaction from being financial debt if it has commercial effect of borrowing. SC found no grounds to interfere with NCLAT's decision. en-us Mon, 05 May 2025 00:00:00 +0530 Sat, 12 Jul 2025 08:40:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774642 The SC dismissed an appeal challenging NCLAT's order allowing initiation of CIRP under Section 7 of IBC. The dispute concerned whether credit facility provided by appellant to respondent-corporate debtor constituted financial debt under Section 5(8) of IBC. NCLAT held that fund infusion by appellant constituted financial debt, making appellant a financial creditor entitled to file Section 7 application. The court ruled that absence of interest clause does not preclude a transaction from being financial debt if it has commercial effect of borrowing. SC found no grounds to interfere with NCLAT's decision. Case-Laws IBC Mon, 05 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774642