https://www.taxtmi.com/caselaws?id=784517 In a s.7 IBC application, the dominant issue was whether a "financial debt" existed to trigger CIRP. The AT held that the Adjudicating Authority rightly relied on the corporate debtor's audited financial statement dated 31.03.2021, prepared prior to initiation of s.7 proceedings in 2024, which recorded nil liability to the financial creditor and reflected receivables from the financial creditor to the corporate debtor; this contemporaneous acknowledgment negated the existence of debt notwithstanding the contention that unilateral set-off was barred by the term sheet. The pre-existing dispute between the parties' stakeholders further supported non-admission. The appeal was dismissed and rejection of the s.7 application was affirmed. en-us Tue, 23 Sep 2025 00:00:00 +0530 Wed, 07 Jan 2026 08:03:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784517 In a s.7 IBC application, the dominant issue was whether a "financial debt" existed to trigger CIRP. The AT held that the Adjudicating Authority rightly relied on the corporate debtor's audited financial statement dated 31.03.2021, prepared prior to initiation of s.7 proceedings in 2024, which recorded nil liability to the financial creditor and reflected receivables from the financial creditor to the corporate debtor; this contemporaneous acknowledgment negated the existence of debt notwithstanding the contention that unilateral set-off was barred by the term sheet. The pre-existing dispute between the parties' stakeholders further supported non-admission. The appeal was dismissed and rejection of the s.7 application was affirmed. Case-Laws IBC Tue, 23 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784517