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.