Raising amount by issuance of convertible debenture qualifies as financial debt: NCLAT Delhi

Indian Renewable Energy Development Agency Limited Vs Waaree Energies Limited (NCLAT Delhi) NCLAT Delhi held that issuer raising amount by issuance of convertible debenture is clearly a ‘financial debt’ within the meaning of section 5(8) of the IBC. Accordingly, appeal dismissed. Facts- The Appellant had sanctioned financial assistance to the Corporate Debtor– M/s Taxus Infrastructure and Power Projects Pvt. Ltd. On account of default committed by the CD, the Appellant filed an Application u/s 7 of the Insolvency and Bankruptcy Code, 2016. The Adjudicating Authority vide order dated 10.1...