The decree from the Bombay High Court, based on dishonored bills ...

Dishonored bills/cheques=financial debt under IBC. Respondent=financial creditor. Interest not mandatory for Section 7. Procedural defects don't invalidate claim.

Case Laws Insolvency and Bankruptcy

July 6, 2024

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.

View Source

← Previous Next →

The decree from the Bombay High Court, based on dishonored bills ...

Dishonored bills/cheques=financial debt under IBC. Respondent=financial creditor. Interest not mandatory for Section 7. Procedural defects don't invalidate claim.

Case Laws Insolvency and Bankruptcy

July 6, 2024

You may also like:

The NCLAT upheld the admission of the Section 7 application filed by the Financial Creditor (Respondent No.1) for initiating CIRP against the Corporate Debtor. It held...

Initiation of CIRP - Financial creditor within the meaning of sub-section (7) of Section 5 of the IBC - The Supreme Court affirmed the NCLAT’s judgment, holding that the...

Section 53(1) of the Insolvency and Bankruptcy Code (IBC) provides for the order of priority in the distribution of liquidation assets. Financial debts owed to unsecured...

Interpretation of statute - Financial creditor or not - The definition of ‘debt’ is also expansive and the same includes inter alia financial debt. The definition of...

The Corporate Debtor denied the existence of a loan agreement with 12% interest, as claimed by the Financial Creditor in the Section 7 application. To qualify as a...

Initiation of CIRP - Financial Creditors - Financial Debt - There is a difference between the levy of liquidated damages or penal interest for default and the financial...

Initiation of CIRP - The Appellant, who is a speculative investor, cannot claim status and benefits as financial creditor under Explanation (i) of Section 5(8)(f) of the...

Admission of a Section 7 application under the Insolvency and Bankruptcy Code, 2016, concerning the classification of a debt as a Financial Debt within the meaning of...

Maintainability of Section 7 application under Insolvency and Bankruptcy Code (IBC) for non-payment of debt analyzed. Financial contract not mandatory for establishing...

Initiation of CIRP - admission of debt - dishonouring of the three cheques with the comments “Account Closed” - While no date of default is mentioned in the promissory...

Revival of company appeal by Financial Creditor - Order of setting aside of CIRP - The application by Akasa Finance Ltd. cites the dishonour of 12 post-dated cheques...

Initiation of CIRP - Assignment of debt during pendency of the proceeding u/s 7 - there is no prohibition in the IBC or any of the Regulations from continuing the...

This legal summary concerns the maintainability of a Section 7 application for initiating the Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor....

Classification of a security deposit made by the appellant for a lease deed with the corporate debtor, as either a financial debt or an operational debt under the...

Admissibility of section 7 application - CIRP - existence of debt and default or not - The NCLAT held that the financial distress and inability of the corporate debtor...

Quick Updates: