https://www.taxtmi.com/caselaws?id=427740 A claim recorded in a settlement agreement may retain its character as operational debt where it remains linked to underlying supply transactions, but Section 9 insolvency requires proof that the debt has crystallised and become due and payable. Here, the staged payment structure and future-linked adjustments meant the alleged liability had not been shown as a defaulted operational debt on the relevant date. The Tribunal therefore upheld rejection of the insolvency petition and held that a mere outstanding exposure or contractual liability, without established default, is insufficient for admission under Section 9. en-us Thu, 15 Sep 2022 00:00:00 +0530 Fri, 16 Sep 2022 08:13:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=427740 A claim recorded in a settlement agreement may retain its character as operational debt where it remains linked to underlying supply transactions, but Section 9 insolvency requires proof that the debt has crystallised and become due and payable. Here, the staged payment structure and future-linked adjustments meant the alleged liability had not been shown as a defaulted operational debt on the relevant date. The Tribunal therefore upheld rejection of the insolvency petition and held that a mere outstanding exposure or contractual liability, without established default, is insufficient for admission under Section 9. Case-Laws Insolvency and Bankruptcy Thu, 15 Sep 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=427740