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Ecl Finance Limited vs Abhinav Mukherji & Ors on 12 July, 2022

This Tribunal in 'Ascot Realty Private Limited' (Supra) has held that for initiation of Insolvency Proceedings against the Corporate Guarantor, the element of disbursal for 'Time Value of Money' is not required. We are of the considered view that despite the fact that there was Company Appeal (AT) (Insolvency) No. 158 of 2022 -8- no direct disbursal of amount to the Corporate Guarantor, any amounts released to the Issuer/Principal Borrower and not to the Corporate Guarantor does constitute 'Financial Debt' as defined under Section 5(8) of the Code and it cannot be said that such amounts do not have consideration for 'Time Value of Money'. In the facts of the attendant case, it has to be only seen whether there was a 'default' and the amounts are 'due and payable' as on the date of filing of the 'Claim'."
National Company Law Appellate Tribunal Cites 45 - Cited by 2 - Full Document
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