Debt arising under a Del Credere Agent arrangement was held to qualify as "operational debt" under ss. 5(20)-5(21) IBC because the agent assumed responsibility for procurement, supply, invoicing, receipt of payments, and statutory compliance, and became financially liable to the supplier upon the corporate debtor's default, giving it an enforceable claim for amounts due; the admission of the s. 9 application was upheld. Objections based on absence of GST returns/e-way bills were treated as procedural and outweighed by invoices, delivery records, payment documents, and debtor admissions establishing supply and liability; privity objections failed as the arrangement operated as a tri-partite understanding by conduct and notification. Contempt was declined as the RP's clarifications were bona fide. Appeal dismissed - NCLAT
Debt arising under a Del Credere Agent arrangement was held to qualify as "operational debt" under ss. 5(20)-5(21) IBC because the agent assumed responsibility for procurement, supply, invoicing, receipt of payments, and statutory compliance, and became financially liable to the supplier upon the corporate debtor's default, giving it an enforceable claim for amounts due; the admission of the s. 9 application was upheld. Objections based on absence of GST returns/e-way bills were treated as procedural and outweighed by invoices, delivery records, payment documents, and debtor admissions establishing supply and liability; privity objections failed as the arrangement operated as a tri-partite understanding by conduct and notification. Contempt was declined as the RP's clarifications were bona fide. Appeal dismissed - NCLAT
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4816 
Join Channel 
