Supreme Court Allows Appeals in IBC Financial Creditor Classification Case — Security Deposit for Sales Promotion Not a Financial Debt. Held that a security deposit paid under a service agreement for sales promotion does not constitute a financial debt under Section 5(8) of the Insolvency and Bankruptcy Code, 2016, as there is no disbursal for time value of money or commercial effect of borrowing.
25 Apr 2024The Supreme Court allowed appeals against NCLAT judgments that classified security deposits paid by sales promoters as financial debts under the Insol...
