CCDs cannot be treated as financial debt under IBC: NCLAT Chennai

Shubham Corporation Private Limited Vs Kotoju Vasudeva Rao (NCLAT Chennai) In the case of Shubham Corporation Private Limited vs. Kotoju Vasudeva Rao, the National Company Law Appellate Tribunal (NCLAT) in Chennai adjudicated on whether Compulsory Convertible Debentures (CCDs) issued by Navayuga Infotech Private Limited to Shubham Corporation Private Limited (the Appellant) should be treated as financial debt under the Insolvency and Bankruptcy Code, 2016 (IBC). Background and Facts of the Case: Navayuga Infotech Private Limited (the Corporate Debtor) had defaulted on its financial obligations...