Default of instalment of Settlement Agreement does not come within the definition of Operational Debt as it does not fall within the definition of additional debt as per Section 5(21) of the IBC – Trafigura India Pvt. Ltd. Vs. TDT Copper Ltd. – NCLAT New Delhi
NCLAT held that the Adjudicating Authority has considered the Settlement Agreement and rightly come to the conclusion that default of instalment of Settlement Agreement does not come within the definition of ‘operational debt’ as it does not fall within the definition of additional debt as per Section 5(21) of the IBC and further prayer made by the Corporate Debtor that the matter be referred to the Arbitration under Section 8 of the Arbitration and Conciliation Act, the Adjudicating Authority has also rightly held that the role of National Company Law Tribunal is very limited while exercising its power under Section 7, 9 and 10 of the IBC, 2016, it is beyond the scope of Section 9 of the IBC.
