Raising Funds Through Share Subscription-Cum-Shareholders Agreement Is Financial Debt, Plea U/S 7 Of IBC Maintainable: NCLT Mumbai

The NCLT Mumbai ruled that raising funds through a share subscription-cum-shareholders agreement constitutes financial debt under Section 7 of the IBC. The tribunal held that the agreement created a financial obligation on the company to repay the funds, making it a financial debt. This decision clarifies the classification of financial obligations under the IBC, ensuring that such agreements are treated as financial debt for insolvency proceedings.