24/06/2022

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 »

NCLT directs class of Financial Creditors/Homebuyers to present on next hearing since they are not co-operating – Vemuri Ravi Kumar Vs. Bhrigu Infra Pvt. Ltd. – NCLT Hyderabad Bench

CoC comprises of 7 real estate allotees, and so far there are no operational creditors. The Adjudicating Authority held that appointing an authorised representative on behalf of majority of the Class of financial creditor would be an additional burden and results in increasing the CIRP costs. At the same time the interest of justice would be served by allowing all the 7 class of financial creditors to form part of the CoC. Therefore, in view of the peculiar facts and circumstances we direct the IRP to proceed with the representation of all the 7 financial creditors instead of they being represented by authorized representative.
Further, it held that since it is represented by Learned Counsel for IRP that class of financial creditors are not co-operating, let the Class of Financial Creditors be present on the next hearing.

NCLT directs class of Financial Creditors/Homebuyers to present on next hearing since they are not co-operating – Vemuri Ravi Kumar Vs. Bhrigu Infra Pvt. Ltd. – NCLT Hyderabad Bench Read Post »

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