In Sec. 5(21), a statutory due is only operational in nature when it is paid to the relevant authority, and not when it is repaid to a party that has paid such statutory authority- Shri IRK Raju Vs. Immaneni Eswara Rao & Ors. -NCLAT New Delhi
Section 5(21) makes a provision of payment of statutory dues as ‘operational debt’. however, what is pertinent to mention is “payment” of statutory dues. This by itself indicates that a statutory due is only operational in nature when it is paid to the relevant authority, and not when it is repaid to a party that has paid such statutory authority. In fact, the amendment of Section 5(21), where the word “repayment” in the context of statutory dues was replaced with the word “payment” makes clear the intent of the legislature that a statutory due becomes operational debt only when the same is to be paid to the relevant authority and not otherwise. Consequently, a statutory due de hors of the invoice of the good or service cannot be claimed as an ‘operational debt’ from a party, where the party is not a statutory authority.
