Supreme Court of India
Phoenix Arc Private Limited v. Spade Financial Services Limited & Ors.
INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.
2 Supreme Court benches have cited this judgment.
What the Court ordered
We hold that: (i) The decision of the NCLAT, in as much as it referred to Spade and AAA as financial creditors, is set aside.
Judgment, page 63
From the headnote
Insolvency and Bankruptcy Code, 2016 – ss.5(7), (8) – Financial creditor; financial debt – Sham/Collusive transaction s, if financial debts – Held: person can be categorised as a financial creditor if a financial debt is owed to it – s.5(8) stipulat es that the essential ingredient of a financial debt is disburs al against consideration for the time value of money – Money a dvanced as debt should be in the receipt of the borrower – Borrower is obligated to return the money or its equivalent along with the consid eration for a time value of money, which is the compensatio n or price payable
Authorities it was built on
- 2019 Swiss Ribbons Pvt. Ltd. & Anr. v. Union of India & Ors.
- 1988 A.R. Antulay v. R.S. Nayak & Anr.
- 2006 M/s. Crawford Bayley and Co. and Ors. v. Union of India and Ors.
- 2019 Pioneer Urban Land and Infrastructure Limited & Anr. v. Union of India & Ors.
- 2018 Arcelormittal India Private Limited v. Satish Kumar Gupta & Ors.
- 2017 Ms. Eera through Dr. Manjula Krippendorf v. State (govt. of Nct of Delhi) & Anr.
- 2011 Abhay Singh Chautala v. C.b.i
Where later benches applied it
- 2024 Global Credit Capital Limited & Anr. v. Sach Marketing Pvt. Ltd. & Anr
- 2026 Elegna Co-op. Housing and Commercial Society Ltd. v. Edelweiss Asset Reconstruction Company Limited & Anr.
Of those, 1 relied on · 1 referred to
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