https://www.taxtmi.com/caselaws?id=404879 Unpaid instalments under a settlement agreement do not, by themselves, constitute operational debt under the Insolvency and Bankruptcy Code, 2016. A section 9 petition requires a debt arising from the provision of goods or services and a corresponding default within the statutory definitions of operational debt and default; a mere breach of settlement terms is not enough. The Tribunal reiterated that insolvency proceedings cannot be used as a recovery mechanism for settlement dues unless the claim independently satisfies the Code's operational debt requirements. On that basis, the section 9 application was held not maintainable and corporate insolvency resolution could not be initiated. en-us Wed, 15 Jul 2020 00:00:00 +0530 Sat, 07 Aug 2021 18:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=404879 Unpaid instalments under a settlement agreement do not, by themselves, constitute operational debt under the Insolvency and Bankruptcy Code, 2016. A section 9 petition requires a debt arising from the provision of goods or services and a corresponding default within the statutory definitions of operational debt and default; a mere breach of settlement terms is not enough. The Tribunal reiterated that insolvency proceedings cannot be used as a recovery mechanism for settlement dues unless the claim independently satisfies the Code's operational debt requirements. On that basis, the section 9 application was held not maintainable and corporate insolvency resolution could not be initiated. Case-Laws Insolvency and Bankruptcy Wed, 15 Jul 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=404879