Default of payment of settlement agreement do not come under the definition of Operational Debt under IBC – M/s Ahluwalia Contracts (India) Ltd. Vs. M/s Logix Infratech Pvt. Ltd. – NCLT New Delhi Bench Court-V
The Adjudicating Authority held that as per the definition, Operational Debt means a claim in respect of provision of goods or services including employment. Now we consider the case of the Applicant and we observe, the claim of the applicant do not fall either under the category of the supply of the goods or service rendered by the Corporate Debtor. Rather the claim of the Applicant is based on the breach of terms and conditions of the settlement agreement, on the basis of which the Applicant has claimed that there is default in payment of the amount as referred to part IV of the application. And the part of the Operational debt says a debt in respect of payment dues arising under any law for the time being enforce. Admittedly the claim of the Applicant also do not come under this part of the definition of the Operational debt.
