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NCLT held that an operational credit cannot be converted into a financial debt if the financial creditor is not eligible to advance a loan as per Section 186 of the Companies Act.

Yashu guptaBrahm datt vermaCorporate insolvency resolution processBankruptcy codeCompanies actAdvocate brahm datt vermaJambudwip exportsUp bone millsJustice abni ranjan kumar sinhaLn guptaFinancial creditorCorporate debtorSection 186 2 of the companies actOperational debtFinancial debtInter corporate loan