Supreme Court · 2021 INSC 51 · Decided 1 February 2021
Phoenix Arc Private Limited v. Spade Financial Services Limited & ORS.
- Court
- Supreme Court of India
- Citation
- 2021 INSC 51 · [2021] 15 S.C.R. 1079
- Case number
- CIVIL APPEAL No. 2842/2020
- Decided
- 1 February 2021
- Bench
- D.Y. CHANDRACHUD, INDU MALHOTRA, INDIRA BANERJEE (3-judge bench)
- Outcome
- Disposed off
- Case type
- Civil
- Acts & sections cited
- IBC Section 5(7), 43, 45(2), 49, 50, 5(24), 5(8)
Headnote
Insolvency and Bankruptcy Code, 2016 - ss.5(7), (8) - Financial creditor; financial debt - Sham/Collusive transactions, if financial debts - Held: A person can be categorised as a financial creditor if a financial debt is owed to it - s.5(8) stipulates of a financial debt is disbursal against consideration for the time value of money - Money advanced as debt should be in the receipt of the borrower - Borrower is obligated to return the money or its equivalent along with the consideration for a time value of money, which is the
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