Amounts covered by security deposits under agreements constitute financial debt: SC

Global Credit Capital Limited & Anr Vs Sach Marketing Pvt Ltd & Anr (Supreme Court of India) Supreme Court held that that the amounts covered by security deposits under the agreements constitute financial debt. Accordingly, section 5(7) of IBC categorizes the person as financial creditor if a financial debt is owned to it. Facts- The issue involved, herein, is whether the first respondent is a financial creditor within the meaning of sub-section (7) of Section 5 of the Insolvency and Bankruptcy Code, 2016. Notably, the corporate debtor, in this case, is M/s. Mount Shivalik Industries L...