https://www.taxtmi.com/caselaws?id=787338 Financial debt may arise even where funds are disbursed to a third party rather than directly to the corporate debtor, provided the arrangement involves consideration for the time value of money, creates liability, and has the commercial effect of borrowing. Mortgage deeds and related security documents must be read as a composite transaction. An express covenant requiring the corporate debtor to discharge secured obligations can create personal liability, constitute a contract of guarantee under the Contract Act, and support financial creditor status under the Code. Such liability need not be confined to enforcement or value of the mortgaged property where the covenant imposes a broader payment obligation. 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 may arise even where funds are disbursed to a third party rather than directly to the corporate debtor, provided the arrangement involves consideration for the time value of money, creates liability, and has the commercial effect of borrowing. Mortgage deeds and related security documents must be read as a composite transaction. An express covenant requiring the corporate debtor to discharge secured obligations can create personal liability, constitute a contract of guarantee under the Contract Act, and support financial creditor status under the Code. Such liability need not be confined to enforcement or value of the mortgaged property where the covenant imposes a broader payment obligation. Case-Laws IBC Tue, 24 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787338