Time value of money - Indian Laws - General

Term time value of money The report of the Insolvency Law Committee dated 26-3-2018 has discussed the interpretation of the term time value of money and stated: 1.4. The current definition of financial debt under Section 5(8) of the Code uses the words [Ed.: The matter between two asterisks has been emphasised in original.] includes [Ed.: The matter between two asterisks has been emphasised in original.] , thus the kinds of financial debts illustrated are not exhaustive. The phrase [Ed.: The matter between two asterisks has been emphasised in original.] disbursed against the consideration for the time value of money [Ed.: The matter between two asterisks has been emphasised in original.] has been the subject of interpretation only in a handful of cases under the Code. The words time value have been interpreted to mean compensation or the price paid for the length of time for which the money has been disbursed. This may be in the form of interest paid on the money, or factoring of a discount in the payment. Pioneer Urban Land and Infrastructure Ltd. Anr- 2019 (8) TMI 532 - SUPREME COURT