Disbursal Against Time Value Of Money Constitutes Financial Debt: NCLT Kolkata

The NCLT (National Company Law Tribunal), Kolkata, clarified that disbursal against the time value of money constitutes financial debt under the IBC (Insolvency and Bankruptcy Code). This ruling aligns with the definition of financial debt under Section 5(8) of the IBC, emphasizing that any amount disbursed with an expectation of repayment along with interest or a premium qualifies as financial debt, enabling the creditor to initiate insolvency proceedings if a default occurs.