Privity of contract between Operational Creditor and Corporate Debtor is required to establish relationship as required under Section 9 of IBC – Mr. Harrish Khurana Vs. M/s One World Realtech Pvt. Ltd. – NCLAT New Delhi
NCLAT upheld decision of the AA and held that a reading of the definition of operational debt makes it clear that it is a claim in respect of provision of goods or services including employment. This should be based on a contract duly entered between the Corporate Debtor and the Operational Creditor and Operational Creditor is a person to whom an operational debt is owned. Therefore, for a relationship of Operational Creditor and Corporate Debtor to exist between two parties under the IBC, the Operational debt must be owed to the Operational Creditor by the Corporate Debtor. The Appellant has produced no document in the form of a contract to establish such a relationship.
