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.

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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

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