NCLAT : In Sanjay Kewalramani vs. Sunil Parmanand Kewalramani & Ors.

Mere fact that the company paid interest @ 12% per annum, during certain period cannot be the ground to hold that the ‘debt’ comes within the meaning of ‘Financial Debt’ consider the Respondents as ‘Financial Creditors’.

There is nothing on the record to suggest that the Respondents had given the loan in favour of the ‘Corporate Debtor’ which can be termed to be ‘disbursement of an amount for consideration for the time value of money’ as required under Section 5(8). Merely grant of loan and admission of taking loan will ipso facto not treat the Respondents as ‘Financial Creditors’, till they show that it complies with the substantive definition or any one or other clause of Section 5(8).

Link : https://nclat.nic.in/Useradmin/upload/9716233765b6a839f1d9c1.pdf