Bombay High Court: Dishonored Cheques Are Financial Debt Under IBC, Section 7 Proceedings Valid Without Interest Agreement.

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....The decree from the Bombay High Court, based on dishonored bills of exchange and cheques, constitutes a financial debt under the IBC. The respondent qualifies as a financial creditor. While interest is not a necessary component for a debt to be considered financial, the threshold for initiating Section 7 proceedings exists even without interest. The appellant's arguments regarding the absence of an agreement and non-applicability of Section 5(8) are unsubstantiated. The procedural defects cited by the appellant do not significantly undermine the validity of the claim u/s 7. The appeal is dismissed.....