The Concession Agreement to contribute & share in the generated revenues between parties is not created any relationship as Operational Creditor & Corporate Debtor, there is no operational debt u/s 5(21) of the Code – M/s Ansal Properties & Infrastructure Ltd. Vs. M/s MGF Developments Ltd. – NCLAT
NCLAT held that there is nothing in these agreements that the Appellant has to provide services to Respondent by carrying out construction and development at the property whereas this is a joint venture of the Appellant and Respondent. We have also seen that in the application under Section 9 of the Code, it is no where mention that the Appellant has provided services or goods to the Respondent. The Adjudicating Authority has rightly held that there is no relationship between the Appellant and Respondent as Operational Creditor and Corporate Debtor. There is no existence of an operational debt as defined under Section 5 (21) of code, 2016.
