Security Deposit as Financial Debt – Sushila H. Mehta Vs. RP of Mount Shivalik Industries Ltd. Ms. Pratibha Khandelwal – NCLAT New Delhi

The Corporate Debtor i.e. Mount Shivalik Industries Ltd. is under CIRP and Ms. Pratibha Khandelwal appointed as RP by the Adjudicating Authority. Sach Marketing Pvt. Ltd. and the other four Creditors who are the Appellant herein filed their claim as the Financial Creditor of the Corporate Debtor. However, the RP has treated their claim as Operational Debt. Hence, Sach Marketing Pvt. Ltd. and the Appellants have filed Applications before the Adjudicating Authority. Ld. Adjudicating Authority vide order dated 18.01.2021 dismissed the Application holding that the RP has rightly admitted the claim as Operational Debt. NCLAT held that the case of the Appellants is squarely covered by the decision of Sach Marketing Pvt. Ltd. Vs. RP of Mount Shivalik Industries Ltd., Ms. Pratibha Khandelwal (2021) ibclaw.in 477 NCLAT and held that the debt owed to the Appellants, is a Financial Debt as defined under Section 5(8) of the IBC.

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If any Public depositor applies showing due of the debt claiming itself as operational creditor and the Resolution Professional or the Tribunal do not accept the claim on the ground that they are not financial creditor, we allow the appellant to raise the question before the Tribunal and if any adverse decision is given by the Tribunal, it will be open to the appellant to raise the issue before NCLAT- Hind Motors India Ltd. Vs. Adjudicating Authority NCLT, Chandigarh – NCLAT New Delhi

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