Equity investment doesn’t fall within meaning of ‘operational debt’ u/s. 5(21) of IBC

Neeta Zanvar Vs Filatex Fashions Ltd (NCLT Hyderabad) NCLT Hyderabad held that equity investment is not a loan and doesn’t fall within the meaning of ‘operational debt’ under section 5(21) of the Insolvency and Bankruptcy Code. Accordingly, application u/s. 9 of IBC for initiation of IBC dismissed. Facts- The present Application has been filed by Mrs Neeta Zanvar, (Operational Creditor/OC/Applicant) u/s. 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking initiation of the Corpo...