Financial debt: indirect disbursement and a covenant to pay can create secured financial creditor status on the facts. https://www.taxtmi.com/highlights?id=97326 Direct disbursement to the corporate debtor is not mandated for classification as financial debt; funds advanced on behalf of or for the benefit of the corporate debtor may satisfy the disbursement element depending on the contractual and factual matrix. A covenant to pay in supplemental mortgage deeds, read with the debenture trust deed and related documents, operates as an enforceable contract of guarantee converting the claim into a secured financial debt. Substance of the transaction (express payment undertaking and joint-and-several liability) governs classification, and the matter is remitted for fresh adjudication consistent with these principles. en-us Mon, 02 Mar 2026 15:16:23 +0530 Mon, 02 Mar 2026 15:16:23 +0530 TaxTMI RSS Generator Financial debt: indirect disbursement and a covenant to pay can create secured financial creditor status on the facts. https://www.taxtmi.com/highlights?id=97326 Direct disbursement to the corporate debtor is not mandated for classification as financial debt; funds advanced on behalf of or for the benefit of the corporate debtor may satisfy the disbursement element depending on the contractual and factual matrix. A covenant to pay in supplemental mortgage deeds, read with the debenture trust deed and related documents, operates as an enforceable contract of guarantee converting the claim into a secured financial debt. Substance of the transaction (express payment undertaking and joint-and-several liability) governs classification, and the matter is remitted for fresh adjudication consistent with these principles. Highlights IBC Mon, 02 Mar 2026 15:16:23 +0530 https://www.taxtmi.com/highlights?id=97326