https://www.taxtmi.com/caselaws?id=782696 The NCLAT upheld admission of a Section 7 IBC application against the corporate debtor, holding that the receivable purchase/factoring arrangement constituted "financial debt" under Section 5(8)(e). Based on the deed of undertaking, contemporaneous correspondence, the presence of collaterals, and a specific irrevocable undertaking referring to "with recourse factoring," the Tribunal found the transaction to be on a full recourse basis, not non-recourse as belatedly claimed by the corporate debtor. Since the corporate debtor had unequivocally assumed liability to pay the factor if invoices remained unpaid, the financial creditor's claim was validly established. Finding no perversity or legal infirmity, the NCLAT dismissed the appeal. en-us Mon, 27 Oct 2025 00:00:00 +0530 Wed, 03 Dec 2025 08:57:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=782696 The NCLAT upheld admission of a Section 7 IBC application against the corporate debtor, holding that the receivable purchase/factoring arrangement constituted "financial debt" under Section 5(8)(e). Based on the deed of undertaking, contemporaneous correspondence, the presence of collaterals, and a specific irrevocable undertaking referring to "with recourse factoring," the Tribunal found the transaction to be on a full recourse basis, not non-recourse as belatedly claimed by the corporate debtor. Since the corporate debtor had unequivocally assumed liability to pay the factor if invoices remained unpaid, the financial creditor's claim was validly established. Finding no perversity or legal infirmity, the NCLAT dismissed the appeal. Case-Laws IBC Mon, 27 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=782696