Affordable Infrastructure and Housing Projects Pvt. Ltd.

Advance deposit against lease rents is Operational Debt, not Financial Debt – M/s Spicejet Ltd. Vs.  M/s Affordable Infrastructure and Housing Projects Pvt. Ltd. – NCLT New Delhi Bench Court-IV

Hon’ble Supreme Court of India in Consolidated Construction Consortium Ltd. Vs. Hitro Energy Solutions Pvt. Ltd. (2022) ibclaw.in 09 SC clearly laid down at any advance payment has been made for providing goods and services, that would fall within the definition of Operational Debt’. Herein, the applicant paid money Rs. 1.20 crore to the corporate debtor for taking the premise situated in Gurgaon on lease and the said amount was not repaid as the respondents failed to execute the lease-deed. In view of the law laid down by the Hon’ble Apex Court, the said amount was taken up by the respondent-corporate debtor towards goods and services to be provided to the applicant herein, therefore, the same falls within the definition of ‘Operational Debt’.

Advance deposit against lease rents is Operational Debt, not Financial Debt – M/s Spicejet Ltd. Vs.  M/s Affordable Infrastructure and Housing Projects Pvt. Ltd. – NCLT New Delhi Bench Court-IV Read Post »

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