Debt Arising From Structured Supply Chain Finance Facility Does Not Constitute 'Financial Debt' U/S 5(8) Of IBC: NCLT New Delhi

The NCLT, New Delhi, has ruled that a "debt arising from a structured supply chain finance facility does not constitute a financial debt" under Section 5(8) of the IBC. The tribunal clarified that such arrangements, which are essentially based on discounting of invoices, are operational debts rather than financial ones. This distinction is crucial as it determines who has the right to initiate the insolvency process against a corporate debtor, thereby providing clarity to creditors and debtors alike.