https://www.taxtmi.com/caselaws?id=785836 Characterisation of debt turned on whether invoice discounting involved disbursement to the corporate debtor; because financers did not make payments to the debtor, the claim was held to be an operational debt under Section 5(21) rather than a financial debt. The subsequent assignment of trade receivables to the claimant did not alter the debt's fundamental nature, so the Adjudicating Authority correctly rejected the Form C claim as inapposite. The impugned order was affirmed and the appeal dismissed, confirming that creditors cannot be reclassified as financial creditors where the underlying transaction lacks financing to the corporate debtor. en-us Wed, 28 Jan 2026 00:00:00 +0530 Mon, 02 Feb 2026 08:20:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785836 Characterisation of debt turned on whether invoice discounting involved disbursement to the corporate debtor; because financers did not make payments to the debtor, the claim was held to be an operational debt under Section 5(21) rather than a financial debt. The subsequent assignment of trade receivables to the claimant did not alter the debt's fundamental nature, so the Adjudicating Authority correctly rejected the Form C claim as inapposite. The impugned order was affirmed and the appeal dismissed, confirming that creditors cannot be reclassified as financial creditors where the underlying transaction lacks financing to the corporate debtor. Case-Laws IBC Wed, 28 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785836