The petitioner, Gurminder Singh, filed a Company Petition against VCAN Active Carbon Pvt Ltd under Section 7 of the Insolvency & Bankruptcy Code, 2016. The petitioner claimed that the Corporate Debtor defaulted on allotting shares against a share application money of ₹70 Lakhs. The petitioner sought initiation of CIRP against the Corporate Debtor, treating the unallotted share application money as a financial debt. The court noted that the money was advanced as share application money and not as a loan. The Corporate Debtor allegedly agreed to return the money, but the court found that this did not constitute a financial debt under Section 5(8) of the IBC.

The petitioner, Gurminder Singh, filed a Company Petition against VCAN Active Carbon Pvt Ltd under Section 7 of the Insolvency & Bankruptcy Code, 2016. The petitioner claimed that the Corporate Debtor defaulted on allotting shares against a share application money of ₹70 Lakhs. The petitioner sought initiation of CIRP against the Corporate Debtor, treating the unallotted share application money as a financial debt. The court noted that the money was advanced as share application money and not as a loan. The Corporate Debtor allegedly agreed to return the money, but the court found that this did not constitute a financial debt under Section 5(8) of the IBC.