Investment in Partnership Business or Joint Venture Excluded from Definition of Financial Debt

Chiragsala Sales Pvt. Ltd. Vs Vaishno Devi Traders Pvt. Ltd. (NCLT Guwahati) Introduction: The case of Chiragsala Sales Pvt. Ltd. vs. Vaishno Devi Traders Pvt. Ltd. at NCLT Guwahati revolves around a critical question – is the amount claimed by the Financial Creditor a Financial Debt under sec. 7 of the Code? To address this, we’ll analyze the Code’s definition of financial debt and scrutinize the terms of the Memorandum of Understanding (MoU) dated 23.09.2019. Detailed Analysis: Section 10 – Definition of Financial Debt: The Code, in section 5(8), defines financial deb...