When agreement is executed between the parties, signed by both the parties and acted upon, mere fact that it not being engrossed on stamped papers shall have no adverse consequence on the claim of the Operational Creditor- M/s. Smartworks Coworking Spaces Pvt. Ltd. Vs. M/s. Turbot HQ India Pvt. Ltd. – NCLAT New Delhi

NCLAT observed that when the Corporate Debtor has accepted the agreement and acted upon by using the premises and have utilized services in the office space provided by the Appellant, even accepting the argument of Learned Counsel for the Respondent that it was not duly stamped, do not negate and do not oblige the Adjudicating Authority to ignore the agreement for finding out as to whether the claim made by the Appellant was an Operational Debt. In Section 9 Proceeding, the Adjudicating Authority has to find out as to whether the Operational Debt is due on the Corporate Debtor. In the present case, when Agreement was admittedly executed between the parties, signed by both the parties and acted upon, mere fact that it not being engrossed on stamped papers shall have no adverse consequence on the claim of the Operational Creditor. We thus are of the view that the Adjudicating Authority erred in determining the 3rd point against the operational creditor.

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