Factoring of Trade Receivables Does Not Convert Operational Debt into Financial Debt: NCLAT Delhi

Canbank Factors Limited Vs Brijesh Singh Bhaduria (NCLAT Delhi) The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC) challenging the order of the National Company Law Tribunal (NCLT), New Delhi, which had dismissed the appellant’s application seeking recognition of its claim as a Financial Creditor in the corporate insolvency resolution process (CIRP) of the Corporate Debtor. The appellant had also sought acceptance of its claim of ₹6.35 crore as financial debt. The appellant, a Non-Banking Financial Company (NBFC) engaged in trade receivables discounting...