https://www.taxtmi.com/caselaws?id=784407 The dominant issue was whether a s.7 IBC application was maintainable on the basis of an arbitral award, i.e., whether the awarded sum constituted a "financial debt" arising from advancement of money rather than consideration for goods/services. The NCLAT held that the arbitral award, read with the contractual terms relied on in the s.7 application, particularly the clause treating the sum as an advance adjustable against export value with any balance payable, evidenced advancement of money and thus a financial debt. Consequently, the financial creditor committed no error in invoking s.7, and the appeal was dismissed. en-us Fri, 19 Sep 2025 00:00:00 +0530 Mon, 05 Jan 2026 08:04:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784407 The dominant issue was whether a s.7 IBC application was maintainable on the basis of an arbitral award, i.e., whether the awarded sum constituted a "financial debt" arising from advancement of money rather than consideration for goods/services. The NCLAT held that the arbitral award, read with the contractual terms relied on in the s.7 application, particularly the clause treating the sum as an advance adjustable against export value with any balance payable, evidenced advancement of money and thus a financial debt. Consequently, the financial creditor committed no error in invoking s.7, and the appeal was dismissed. Case-Laws IBC Fri, 19 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784407