Whether the Del Credere Agent is an Operational Creditor under the Code – M/s. Alturas Trading Corp. Vs. M/s VRMX Concrete India Pvt. Ltd. – NCLT Chennai Bench
In commercial parlance, a Del credere Agent is a person who is engaged by the Principal to assist in supply of goods or services by contacting potential buyers on behalf of the Principal. The difference between the other Agent and the Del credere Agent is that the Del credere Agent guarantees to make the payment to the Principal even if the buyer fails to make payment to the Principal before the due date while ordinary agent does not guarantee recovery of dues from Debtor. The Del credere Agent is incentivised in ensuring that the Credit / Sale is effected to the parties who are financially capable of borrowing the payment. Accordingly in the event of inability to recover the sale proceeds, the Del Credere Agent is liable to compensate the Principal.
