NCLT Amaravati says Disbursement Under Commercial Funding Arrangement Constitutes Financial Debt

NCLT Amaravati admitted a Section 7 application filed by the proprietor of Garuda Industries against Shyam EPC Private Limited. The corporate debtor argued that the transaction was part of a commercial arrangement for procurement and sale of coal and coke, rather than an independent lending transaction. The Tribunal nevertheless found that the disbursement of ₹1.05 crore under a written agreement, carrying interest at 18% per annum and repayable within 60 days, constituted financial debt. It also found that the debt had become due and payable, the default exceeded the statutory threshold and the petition was within limitation.