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NCLAT: Can’t Categorize Security Deposit Without Intention of Commercial Effect of Borrowing, as FD - (18 Feb 2025)

INSOLVENCY

NCLAT New Delhi bench has held that the security amount deposited under a Memorandum of Understanding (MoU) without any intention of commercial effect of borrowing cannot be categorised as financial debt under section 5(8) of the Insolvency and Bankruptcy Code, 2016 (IBC).

Tags : NCLAT NEW DELHI   MEMORANDUM OF UNDERSTANDING   COMMERCIAL EFFECT  

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