https://www.taxtmi.com/caselaws?id=798720 A deposit made expressly without prejudice after a Section 7 insolvency petition is reserved for orders does not constitute an unconditional admission of liability or default. Where the corporate debtor disputes maintainability, the existence of financial debt and default, those objections require determination and cannot be displaced by closure of the proceeding based solely on the deposit. Claims for interest, default interest and legal expenses must each have a contractual or statutory basis and be legally recoverable before they can support a financial debt. Permission to pursue legally maintainable claims does not adjudicate them. Closure without deciding the disputed threshold requirements is legally unsustainable. en-us Wed, 09 Sep 2026 00:00:00 +0530 Fri, 11 Sep 2026 08:13:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=798720 A deposit made expressly without prejudice after a Section 7 insolvency petition is reserved for orders does not constitute an unconditional admission of liability or default. Where the corporate debtor disputes maintainability, the existence of financial debt and default, those objections require determination and cannot be displaced by closure of the proceeding based solely on the deposit. Claims for interest, default interest and legal expenses must each have a contractual or statutory basis and be legally recoverable before they can support a financial debt. Permission to pursue legally maintainable claims does not adjudicate them. Closure without deciding the disputed threshold requirements is legally unsustainable. Case-Laws IBC Wed, 09 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=798720