https://www.taxtmi.com/caselaws?id=780543 NCLAT (PB) dismissed the appeal and upheld the Adjudicating Authority's rejection of the Section 7 application. The Tribunal held the advance satisfied elements of "financial debt," and noted SC precedents confirm interest-free advances can qualify and written contracts are not mandatory; the real nature of the transaction may be examined. However, the date of default was contested and the debt was not shown to be clearly due and payable because project completion was disputed. Because default and exigibility of the debt were not established, the Section 7 petition's rejection was sustained. en-us Wed, 29 Oct 2025 00:00:00 +0530 Sat, 01 Nov 2025 08:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=780543 NCLAT (PB) dismissed the appeal and upheld the Adjudicating Authority's rejection of the Section 7 application. The Tribunal held the advance satisfied elements of "financial debt," and noted SC precedents confirm interest-free advances can qualify and written contracts are not mandatory; the real nature of the transaction may be examined. However, the date of default was contested and the debt was not shown to be clearly due and payable because project completion was disputed. Because default and exigibility of the debt were not established, the Section 7 petition's rejection was sustained. Case-Laws IBC Wed, 29 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=780543