https://www.taxtmi.com/caselaws?id=780367 SC dismissed the s.7 application and the appeal, holding the appellant was not a financial creditor. The court found CRPS constitute share capital, not loans, so amounts paid are not debt and dividends depend on profits; redemption could occur only out of profits or specified reserves under s.55 Companies Act. Because redemption was not payable (no profits/reserves or fresh-issue proceeds), no default under s.3(12) IBC occurred. Conversion to CRPS extinguished prior claim and there was no "commercial effect of borrowing," so the appeal lacked merit and was dismissed. en-us Tue, 28 Oct 2025 00:00:00 +0530 Wed, 29 Oct 2025 08:22:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=780367 SC dismissed the s.7 application and the appeal, holding the appellant was not a financial creditor. The court found CRPS constitute share capital, not loans, so amounts paid are not debt and dividends depend on profits; redemption could occur only out of profits or specified reserves under s.55 Companies Act. Because redemption was not payable (no profits/reserves or fresh-issue proceeds), no default under s.3(12) IBC occurred. Conversion to CRPS extinguished prior claim and there was no "commercial effect of borrowing," so the appeal lacked merit and was dismissed. Case-Laws IBC Tue, 28 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=780367