https://www.taxtmi.com/caselaws?id=762068 The NCLAT Chennai dismissed an appeal challenging rejection of a CIRP application under Section 9 of the IB Code. The appellant, an operational creditor, claimed performance pay from the corporate debtor but issued both Form 3 and Form 4 notices under Section 8, indicating uncertainty about the claim's nature. The tribunal held that performance pay requiring subjective assessment based on policy criteria constitutes a variable factor, not falling within operational debt definition under IB Code. The issuance of multiple forms demonstrated the appellant's confusion about claim classification, making the demand indeterminate and unsuitable for CIRP initiation. en-us Thu, 21 Nov 2024 00:00:00 +0530 Sat, 23 Nov 2024 08:01:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=762068 The NCLAT Chennai dismissed an appeal challenging rejection of a CIRP application under Section 9 of the IB Code. The appellant, an operational creditor, claimed performance pay from the corporate debtor but issued both Form 3 and Form 4 notices under Section 8, indicating uncertainty about the claim's nature. The tribunal held that performance pay requiring subjective assessment based on policy criteria constitutes a variable factor, not falling within operational debt definition under IB Code. The issuance of multiple forms demonstrated the appellant's confusion about claim classification, making the demand indeterminate and unsuitable for CIRP initiation. Case-Laws IBC Thu, 21 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=762068