https://www.taxtmi.com/caselaws?id=789245 An amount paid by a director through a personal mortgage loan, later repaid from sale of her property, was not treated as financial debt of the corporate debtor because the loan was obtained in the director's own name and there was no direct disbursement by the director to the company. The board resolution only noted that the company would avail mortgage finance on the director's property, which did not satisfy the requirement under Section 5(8) of the Insolvency and Bankruptcy Code that the debt be disbursed against consideration for the time value of money. As no borrowing transaction with commercial effect was shown, the Section 7 application was held not maintainable. en-us Wed, 01 Apr 2026 00:00:00 +0530 Mon, 06 Apr 2026 08:51:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789245 An amount paid by a director through a personal mortgage loan, later repaid from sale of her property, was not treated as financial debt of the corporate debtor because the loan was obtained in the director's own name and there was no direct disbursement by the director to the company. The board resolution only noted that the company would avail mortgage finance on the director's property, which did not satisfy the requirement under Section 5(8) of the Insolvency and Bankruptcy Code that the debt be disbursed against consideration for the time value of money. As no borrowing transaction with commercial effect was shown, the Section 7 application was held not maintainable. Case-Laws IBC Wed, 01 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789245