Jawan Mining and Construction Equipments Pvt. Ltd.

Neil Industries Ltd. Vs. Jawan Mining and Construction Equipments Pvt. Ltd. – NCLAT New Delhi

NCLAT held that Section 5(8) of the IBC which is relevant for the present case defines financial debt to mean a debt along with interest which is disbursed against the consideration for the time value of money. Further, clauses (a) to (i) of Section 5(8) delineates the nature of transactions which are included in the definition of financial debt which includes money borrowed against payment of interest. In the facts of the present case, the Appellant has issued a demand notice which contained cumulative demand of all the three loan amounts. In the given factual matrix, the Adjudicating Authority is required to notice as to whether the application is complete or not and if there is a debt and the Corporate Debtor has defaulted in the payment, whether the amount so defaulted is more than the threshold limit of Rs. 1 lakh.

Neil Industries Ltd. Vs. Jawan Mining and Construction Equipments Pvt. Ltd. – NCLAT New Delhi Read Post »

For any transaction to be a Financial Debt under IBC, an element of the consideration for the time in view of money is very critical – Neil Industries Ltd. Vs. Jawan Mining and Construction Equipments Pvt. Ltd. – NCLT Jaipur Bench

The Adjudicating Authority held that as per Section 5(8), financial debt is a debt along with interest which is disbursed against the consideration for the time value of money and it may include any of the events enumerated in sub-clauses (a) to (i). Therefore, the first essential requirement of financial debt is that the debt should be disbursed against the consideration for the time value of money, which may include situations enumerated in various sub-clauses. It referred Mr. Rajnish Jain vs. (Manoj Kumar Singh – I.R.P.) & Ors. (2020) ibclaw.in 409 NCLAT and held that therefore, it is essential that for any transaction to be a Financial Debt, an element of the consideration for the time in view of money is very critical.

For any transaction to be a Financial Debt under IBC, an element of the consideration for the time in view of money is very critical – Neil Industries Ltd. Vs. Jawan Mining and Construction Equipments Pvt. Ltd. – NCLT Jaipur Bench Read Post »

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