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Loan Secured by Sale Agreement Is Financial Debt: NCLAT Allows Section 7 Petition
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AdvertisementAdvantagesai Projects Private Ltd Vs Akshay Techforge Pvt Ltd (NCLAT Delhi) The National Company Law Appellate Tribunal (NCLAT) heard an appeal against the order of the National Company Law Tribunal (NCLT), Mumbai, dated 9 February 2023, which had dismissed an application filed under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The NCLT had held that the transaction between the parties was one of sale and purchase of immovable property and did not constitute a financial debt.
According to the appellant, the respondent had defaulted on a loan obtained from the State Bank of Indi...