Court Rules Money Paid to Bank Not Financial Debt Without Loan Component or Fixed Repayment Time in CIRP Case.

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....Initiation of CIRP - Financial Debt or not - money had been disbursed by the Appellant on behalf of Corporate Debtor to SBI towards loan repayment is undisputed. It is also an admitted fact that no interest was either claimed by the Appellant nor paid by the Corporate Debtor. - The misconceived finding of the Adjudicating Authority cannot be accepted that simply because the instant transaction was bereft of loan component and no time was fixed for repayment, it did not qualify to be a financial debt. - However, unless the entire payment was made, no right would accrue to the Appellant to enter into the shoes of SBI and have right to title and possession of the subject property. - AT....