The intersection of supply chain financing and insolvency law has increasingly become a fertile ground for jurisprudential debate, particularly concerning the classification of creditors and the validity of unregistered security interests. The National Company Law Tribunal, Amaravati Bench, had occasion to examine these intricate questions in Kushal Finnovation Capital Private Limited v. Rajesh Chillale, Interim Resolution Professional of Kallam Brothers Cottons Private Limited and Others, decided on 29 April 2026, in Interlocutory Application No. IA (IBC)/79/2026 arising out of Company Petition No. CP (IB)/2/7/AMR/2025. The case presents a nuanced exposition on whether invoice financing constitutes financial debt or operational debt,…
Insolvency Guardian
Insolvency Services & Bankruptcy Advice
