Raising of amount by Company through Share Subscription-cum Shareholders Agreement is a Financial Debt – Spectrum Trimpex Pvt. Ltd. Vs. VPhrase Analytics Solutions Pvt. Ltd. – NCLT Mumbai Bench

Hon’ble NCLT Mumbai Bench refers Sanjay D. Kakade v. HDFC Ventures Trustee Co. Ltd & Ors. (2023) ibclaw.in 751 NCLAT and holds that since the transaction has the commercial effect of borrowing and there was a disbursement of money against the consideration for time value of money, the money was raised by the Corporate Debtor from the shareholders through Share Subscription-cum-Shareholders Agreement is a financial debt, as defined u/s 5(8) of the Code.

Raising of amount by Company through Share Subscription-cum Shareholders Agreement is a Financial Debt – Spectrum Trimpex Pvt. Ltd. Vs. VPhrase Analytics Solutions Pvt. Ltd. – NCLT Mumbai Bench Read Post »