AdvertisementMangaldas Finance Vs Milano Papers Private Limited (NCLT Ahmedabad) Take-Over Financing Of A Bank Loan Is Not ‘Financial Debt’: NCLT Ahmedabad’s Ruling In Mangaldas Finance v. Milano Papers And The Narrowing Disbursal Test Under Section 5(8) IBC A recurring fact pattern before the National Company Law Tribunal (“NCLT”) involves a lender — often a registered money lender or an NBFC — that sanctions a fresh loan to a corporate borrower, but disburses the amount not to the borrower but directly to an existing secured lender to clear a prior liability. The question that then arises a...