Property Alloted In Lieu Of Consultancy Fees Constitutes Financial Debt: NCLT Mumbai

The NCLT, Mumbai, has ruled that "property allotment in lieu of consultancy fees constitutes a financial debt." The tribunal found that the arrangement had all the characteristics of a financial debt, including the time value of money, as the property was allotted in lieu of a consultancy fee. This decision expands the definition of a financial debt, thereby providing a significant precedent for creditors, especially in the real estate and services sectors.