Dues payable to Government Authorities would come within the ambit of operational debt – State of Haryana through Additional Chief Secretary, Department of Industries Vs. Sanyam Goel, RP Haryana Telecom Ltd. – NCLT Chandigarh Bench
March 30, 2023
The Adjudicating Authority held that a reference may be made to the decision of the Hon’ble Supreme Court in the matter of Ghanshyam Mishra (2021) ibclaw.in 54 SC held that dues payable to Government Authorities would come within the ambit of operational debt. Therefore, we are not inclined to accept the aforesaid contention of the applicant. Hence, the applicant’s debt falls within the category of operational debt as defined under Section 5(21) of the Code. Though the debt is payable to the Government Authorities, it is not a financial debt. To reiterate, the amounts payable to the applicant are an operational debt and to be treated at par with debts owed to a secured creditor under Section 53 as per the decision of the Hon’ble Supreme Court in the matter of Rainbow Papers (2022) ibclaw.in 107 SC.