https://www.taxtmi.com/caselaws?id=782569 NCLAT dismissed the appeal and upheld rejection of the CIRP petition, holding that the appellant is not a "financial creditor" under s.5(7) read with s.5(8) IBC. The tribunal found that the underlying Reseller Agreement created a commercial collaboration and revenue-sharing model, not a loan or borrowing involving disbursement against consideration for time value of money. The assured returns constituted profit margin contingent on business performance, not interest on a debt. No obligation of repayment over a specified period with interest was established, and correspondence between the parties did not alter the transaction's commercial character. Consequently, the claimed amount did not constitute "financial debt" and the appellant lacked locus to initiate CIRP. en-us Thu, 03 Jul 2025 00:00:00 +0530 Tue, 02 Dec 2025 08:35:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782569 NCLAT dismissed the appeal and upheld rejection of the CIRP petition, holding that the appellant is not a "financial creditor" under s.5(7) read with s.5(8) IBC. The tribunal found that the underlying Reseller Agreement created a commercial collaboration and revenue-sharing model, not a loan or borrowing involving disbursement against consideration for time value of money. The assured returns constituted profit margin contingent on business performance, not interest on a debt. No obligation of repayment over a specified period with interest was established, and correspondence between the parties did not alter the transaction's commercial character. Consequently, the claimed amount did not constitute "financial debt" and the appellant lacked locus to initiate CIRP. Case-Laws IBC Thu, 03 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782569