https://www.taxtmi.com/caselaws?id=794368 Amounts advanced under a subscription and shareholders agreement for acquisition of equity shares and convertible warrants were treated as investment capital, not borrowing, because the arrangement sought equity participation, majority control, voting rights, board representation and governance rights, and contained no contractual obligation of repayment. The attempt to characterise the payment as financial debt under Section 5(8)(f) of the Insolvency and Bankruptcy Code, 2016 failed, and the reference to Section 42(6) of the Companies Act, 2013 was rejected as inapplicable. On that basis, amounts paid for shares and warrants do not constitute financial debt merely because they are intended to secure control or participation in the company. en-us Wed, 01 Jul 2026 00:00:00 +0530 Sat, 04 Jul 2026 08:15:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794368 Amounts advanced under a subscription and shareholders agreement for acquisition of equity shares and convertible warrants were treated as investment capital, not borrowing, because the arrangement sought equity participation, majority control, voting rights, board representation and governance rights, and contained no contractual obligation of repayment. The attempt to characterise the payment as financial debt under Section 5(8)(f) of the Insolvency and Bankruptcy Code, 2016 failed, and the reference to Section 42(6) of the Companies Act, 2013 was rejected as inapplicable. On that basis, amounts paid for shares and warrants do not constitute financial debt merely because they are intended to secure control or participation in the company. Case-Laws IBC Wed, 01 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794368