https://www.taxtmi.com/caselaws?id=787554 A refundable project-linked advance can constitute financial debt where the agreement, read as a whole, shows financial assistance for development, refundability after completion, and profit-sharing in lieu of interest; the security-deposit label is not determinative. On the facts, unilateral termination of the agreement and failure to refund the amount established debt and default sufficient for Section 7 admission. Pendency of arbitral proceedings does not bar initiation of corporate insolvency resolution proceedings where debt and default are shown, and arbitration does not foreclose insolvency action. The admission of the Section 7 petition was upheld and the insolvency proceeding was allowed to stand. en-us Fri, 29 Aug 2025 00:00:00 +0530 Mon, 09 Mar 2026 07:53:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787554 A refundable project-linked advance can constitute financial debt where the agreement, read as a whole, shows financial assistance for development, refundability after completion, and profit-sharing in lieu of interest; the security-deposit label is not determinative. On the facts, unilateral termination of the agreement and failure to refund the amount established debt and default sufficient for Section 7 admission. Pendency of arbitral proceedings does not bar initiation of corporate insolvency resolution proceedings where debt and default are shown, and arbitration does not foreclose insolvency action. The admission of the Section 7 petition was upheld and the insolvency proceeding was allowed to stand. Case-Laws IBC Fri, 29 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787554