TaxTMI 
TaxTMI 
2021 (3) TMI 206
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....or, Mr. Nitin Gupta for initiation of corporate insolvency resolution process against the respondent/corporate debtor company-International Land Developers P. Ltd. 2. As per averments made in the petition, the retainership arrangement was executed between the operational creditor and corporate debtor on August 11, 2018 as "Legal Advisor and Consultant" with the operational creditor for 1 (one) year, for a fixed yearly retainership fees of Rs. 10,50,000 and issued 12 post-dated cheques of Rs. 87,500 each, i. e., Rs. 78,750 fees TDS of Rs. 8,750 in favour of the operational creditor. Further, retainership arrangement was executed between the operational creditor and corporate debtor's group company on November 1, 2018 as "Legal Advisor a....
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....n the corporate debtor, its group company, Mr. Alimuddin, director of corporate debtor, Mr. Salman Jalaluddin Akbar, director of corporate debtor and operational creditor to mutually settle the disputed matter amicably. For pending legal fees, various cheques were issued by the corporate debtor's group company to operational creditor. Delay in payment on due date/dishonour of cheques, amount payable by corporate debtor and its group company, was to be paid along with interest at 2 per cent. per month for the first month and 2.5 per cent. per month there of till such time the payment is made. On January 10, 2020 first cheque No. 541510 issued by corporate debtor's group company in favour of the operational creditor for Rs. 4,50,000 d....
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....ies. The corporate debtor has failed to abide by the terms of the settlement agreement dated December 27, 2019. 7. We have heard learned counsel appearing for the petitioner and perused the averments made in the application and the documents enclosed with the same. In course of hearing, we find that the claim of the applicant is based on settlement agreement and on the basis of that the petitioner claimed that since the respondent violated the terms and conditions of settlement and there is default in payment of the settlement amount, therefore, the petitioner filed the present application for initiation of CIRP for default in payment of operational debt. Therefore, we would like to consider at first whether the terms and condition of sett....
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....: "'default' means non-payment of debt when whole or any part or instalment of the amount of debt has become due and payable and is not paid by the debtor or the corporate debtor, as the case may be ;" 10. Mere plain reading of the above provisions shows that a claim in respect of the provision of goods or services including employment or a debt in respect of the payment of dues arising under any law for the time being in force is an operational debt and only default in respect of that operational debt a person can initiate CIRP under section 9 of the IBC. 11. In the light of that facts when we shall consider the case in hand then we find that the settlement agreement on the basis of which the present application is filed by the....