Corporate insolvency proceedings can’t be triggered once debt converted into capital: NCLAT – Business Today

The observations from a two-member NCLAT bench came as it upheld an order of the National Company Law Tribunal

PTI | September 3, 2020 | Updated 08:21 IST

Citing Section 7 of the Code, the appellate tribunal said that it is latently and patently clear that once the ‘debt’ is converted into ‘capital’ it cannot be termed as ‘financial debt’ and the appellant cannot be described as ‘financial creditor’