Chennai: The National Company Law Tribunal, Chennai Bench, has dismissed a petition filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, holding that a loan disbursed directly into the personal bank account of a company’s director, and not into the account of the company itself, does not constitute a “financial debt” owed by the corporate debtor, in the absence of evidence that the funds were credited to, meant for, or applied towards the company’s business.
A Bench comprising Shri Jyoti Kumar Tripathi, Member (Judicial), and Shri Ravichandran Ramasamy, Member (Technical), was considering a petition filed by Rajesh Kumar Saraf HUF against Veremax Technologie Services Ltd. seeking initiation of…