https://www.taxtmi.com/highlights?id=96246 Advance not reflected as borrowing in the balance sheet does not acquire the character of financial debt; therefore classification in accounts is determinative of financial debt character and precludes claim as such. A loan expressly restricted by contract to land development and diverted the same day to purchase a personal luxury car constituted misuse of corporate funds and breached the loan diversion clause, rendering the transaction non-genuine and the claim bonafide-disputed. Directors role in permitting diversion engages responsibility for misuse. Where a transaction is found to have defrauded creditors, the claim may be rejected and the transaction declared void. en-us Thu, 22 Jan 2026 10:43:51 +0530 Thu, 22 Jan 2026 10:43:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=96246 Advance not reflected as borrowing in the balance sheet does not acquire the character of financial debt; therefore classification in accounts is determinative of financial debt character and precludes claim as such. A loan expressly restricted by contract to land development and diverted the same day to purchase a personal luxury car constituted misuse of corporate funds and breached the loan diversion clause, rendering the transaction non-genuine and the claim bonafide-disputed. Directors role in permitting diversion engages responsibility for misuse. Where a transaction is found to have defrauded creditors, the claim may be rejected and the transaction declared void. Highlights IBC Thu, 22 Jan 2026 10:43:51 +0530 https://www.taxtmi.com/highlights?id=96246