TaxTMI 
TaxTMI 
2018 (10) TMI 1803
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....rate Insolvency Resolution Process as against the VAB Commercial Private Limited/corporate debtor claiming that an amount of Rs. 3,63,122/is due from the corporate debtor and despite demand notice delivered to the corporate debtor, the corporate debtor failed to pay the debt, hence this application. 2. Briefly stating the facts as the following:- (a) The operational creditor has been carrying on the business of providing organised and comprehensive services and training in the field of bio-pharmaceuticals and bio-technology and has also been producing hygienic quality feeds for cattle. Since the operational creditor has been looking for an investor to enter into a Joint Venture for optimum capacity utilisation of its feed plant ....
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....editor as was agreed between the operational creditor and the corporate debtor. (d) Since the corporate debtor has failed to provide the requisite services to the operational creditor, the operational creditor is entitled to an interest @ 18% compounded quarterly calculated on the said sum of (Rupees Three Lakhs) only amounting to Rs. 63,122/- (Sixty three thousand one hundred Wventy-two) only. Thus, the corporate debtor is liable to pay the operational creditor a sum of Rs. 3,63,122/- (Rupees Three Lakh Sixty Three Thousand One Hundred and Twenty Two) only on account of principal and interest. The applicant has sent demand notice on 02.01.2018. The notice was delivered to the corporate debtor on 09.01.2018. No reply or notice of d....
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....e rendered by the corporate debtor. It is alleged that the corporate debtor has failed and neglected to furnish any detail of the prospective investors, thereby committing breach of terms in the mandate letter. Despite breach of terms in the mandate letter, the corporate debtor has not refunded the advance amount of Rs. 3 Lakhs (Rupees Three Lakhs) paid by the operational creditor to the corporate debtor. Since the corporate debtor has failed to provide the requisite service to the operational creditor, the operational creditor claims refund of Rs. 3 Lakhs with interest @ 18%, compounded quarterly. According to the operational creditor, they are entitled to claim interest at the aforesaid rate to the tune of Rs. 63,122/- thereby claimed a t....
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....al creditor, what is to be due to the operational creditor must be an operational debt. An operational debt is defined u/s. 5(21) of the Code. 13. It reads as operational debt" means a claim in respect of the provision of goods or services including employment or a debt in respect of the repayment of dues aHsing under any law for the time being in force and payable to the Central Government, any State Government or any local authority; " 14. A reading of Section 5(21) of the Code, it is clear that the debt includes a claim in respect of provision of goods or services including employment or a debt in respect of the repayment of dues arising under any law for the time being in force and payable to the Central Government, State Governme....
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.... the definition of Operational Creditor. It is good to read the following paragraph in the said order. It reads as follows:- "In order to fall within the four comers of 'Operational Creditor' as per Section 9 of the IBC, it must be shown that he is a person to whom an 'Operational Debt' is owned or it is legally assigned/transferred as is patent from a bare perusal of Section 5(20) of IBC. The expression 'Operational Debt' has been defined by Section 5(21) of IBC and it must fulfill following substantive elements namely: (a) Debt arising out of provisions of goods; or (b) services; or (c) out of employment It also covers dues arising under any law for the time being in for....