Whether Share Application Money which in the event non-allotment of shares attracts interest under section 42(6) of Companies Act, 2013, falls within the ambit of definition of Financial Debt under IBC? – Mittson Fille Enterprise Vs. Sammaan Ventures Ltd. – NCLT Kolkata Bench
Hon’ble NCLT Kolkata Bench following larger bench decision from Pramod Sharma v. Karanaya Heart Care Pvt. Ltd. (2022) ibclaw.in 303 and contrary decision in Mr. Kushan Mitra v Mr. Amit Goel (2021) ibclaw.in 616 NCLAT, held that the amount of default is not a Financial Debt and therefore petition under Section 7 is not maintainable.