Case Law Analysis
|Supreme Court of India
Section 7 IBC | Loan Disbursed to Builder, Not Corporate Debtor, Bars Financial Creditor Status: SC
Supreme Court holds that a bank cannot initiate insolvency proceedings under Section 7 of the IBC if the loan was disbursed to a builder rather than the corporate debtor. The ruling underscores that financial creditor status requires a direct lending arrangement, not merely a contractual transaction.