Refundable Security Deposit made by Clearing and Forwarding Agent (CFA) in terms of the Clearing and Forwarding Agreement constitutes Financial Debt – Dadha Pharmacare Vs. Nava Healthcare Pvt. Ltd. – NCLT New Delhi Bench
January 18, 2024
Hon’ble NCLT New Delhi Bench finds force in the plea raised on behalf of the Respondent that in terms of the provisions of Section 5(8)(f) of IBC, 2016, the security amount paid in terms of the agreement constitutes financial debt. A debt constitutes operational debt when the claim is in respect of provisions of goods and services including employment or a debt in respect of payment of dues arising under any law for the time being in force and payable to the Central Government, State Government, any State Government or any local authority. The security amount does not fall in any of the categories referred to in Section 5(21) of IBC, 2016.