NCLT Holds Financial Lease With Transfer Of Ownership & Interest For Default As “Financial Debt”, Admits GDA's Claim As “Financial Creditor”

The NCLT ruled that a financial lease involving the transfer of ownership interest for default qualifies as a financial debt under the Insolvency and Bankruptcy Code (IBC). The decision allows a financial creditor to file a claim based on such leases. This ruling is significant because it expands the definition of financial debt, including financial leases with transfer of ownership. It clarifies the scope of financial creditors under the IBC, providing clarity for lenders and creditors involved in insolvency proceedings.