Your company has received recovery notice from a Creditor with whom receivables of the Company are discounted with Chief Financial Officer (CFO) of your Company is of the view that this is not covered as 'Financial Debt'

As per Section 5(8) of Insolvency & Bankruptcy Code, 2016 "Financial Debt" means a debt along with interest, if any, which is disbursed against the consideration for the time value of money and includes: (a) money borrowed against the payment of interest; (b) any amount raised by acceptance under any acceptance credit facility or its de-materialised equivalent; (c) any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; (d) the amount of any liability in respect of any lease or hire purchase contract which is deemed as a finance or capital lease under the Indian Accounting Standards or such other accounting standards as may be prescribed; (e) Receivables sold or discounted other than any receivables sold on non-recourse basis, (f) any amount raised under any other transaction, including any forward sale or purchase agreement, having the commercial effect of a borrowing: In view of definition "Financial Debt" and as per the Insolvency & Bankruptcy Code receivables discounted other than any receivables on non-recourse basis is only covered has financial debt, hence the contention of the CFO is not correct in the given case as the receivables are sold on non-recourse basis.