Loan Without Written Agreement Qualifies as Financial Debt Due to Time Value of Money: NCLAT Delhi

Sinki Commodities Pvt. Ltd. Vs ABC Floors Pvt. Ltd. (NCLAT Delhi) The appeal before the National Company Law Appellate Tribunal (NCLAT), Delhi arose from an order dated 31.03.2022 passed by the National Company Law Tribunal (NCLT), Kolkata Bench, which had rejected a Section 7 application filed by a Financial Creditor seeking initiation of the corporate insolvency resolution process. The Adjudicating Authority, while acknowledging that an amount of ₹1.60 crore had been disbursed to the Corporate Debtor, concluded that the transaction could not be treated as a “financial debt” due to lack...