Q. Unsecured loans in violation of section 73

Question

Financial creditors have raised objections regarding unsecured loans from individuals before NCLT being amounts taken by the CD in violation of sec 73 of CA . They argued that these amounts not to be treated as FC.Can somebody guide citing relevant cases?

Answer 1

Hi Vimal ji,

Violation of Sector 73 of CA, 2013 will be judged in light of available documents and information. More details require to answer.

Generally, claim of individual as FC is not valid.

Regards,
CA Rahul Gupta
E: rahul@mrt-ca.in