https://www.taxtmi.com/caselaws?id=787338 Financial debt under the Insolvency and Bankruptcy Code does not require direct disbursement to the corporate debtor if the advance is made for its benefit and in a transaction having the commercial effect of borrowing. The note further states that mortgage and debenture documents, read as a composite arrangement, may make a corporate debtor a financial creditor's secured debtor where the debtor has undertaken obligations tied to the secured debt. An express covenant to pay in the mortgage deeds may operate as a personal undertaking akin to a guarantee under Section 126 of the Indian Contract Act, and liability is not confined merely to the value of the mortgaged property. The arrangement is therefore described as capable of amounting to a contract of guarantee and secured financial debt. en-us Tue, 24 Feb 2026 00:00:00 +0530 Mon, 02 Mar 2026 08:36:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787338 Financial debt under the Insolvency and Bankruptcy Code does not require direct disbursement to the corporate debtor if the advance is made for its benefit and in a transaction having the commercial effect of borrowing. The note further states that mortgage and debenture documents, read as a composite arrangement, may make a corporate debtor a financial creditor's secured debtor where the debtor has undertaken obligations tied to the secured debt. An express covenant to pay in the mortgage deeds may operate as a personal undertaking akin to a guarantee under Section 126 of the Indian Contract Act, and liability is not confined merely to the value of the mortgaged property. The arrangement is therefore described as capable of amounting to a contract of guarantee and secured financial debt. Case-Laws IBC Tue, 24 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787338