Can Purchaser of goods/services be an operational creditor ?

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In its latest judgment, the Supreme Court has very clearly defined  operational debt and operational creditors under the Insolvency and Bankruptcy Code, 2016.

So far, it remained limited only to including those who supply goods or services to a corporate debtor and exclude those who receive goods or services from the corporate debtor.

The Court said, that a demand notice for an operational debt by an operational creditor does not necessarily need to be accompanied by an invoice.

It can also include a ‘provision of law, contract or other document.

SC was of the view that ‘in respect of’ in Section 5(21) of IBC must be interpreted in a broad and purposive manner in order to include all those who provide or receive operational services from the corporate debtor, which ultimately lead to an operational debt.

The Apex Court in its Judgement, held that  a debt arising out of advance payment made to a corporate debtor for supply of goods or services would be considered as an operational debt.

Reliance in this regard was placed on Section 8(1) of the IBC read with Rule 5(1) and Form 3 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules 2016. 

Regulations 7(2)(b)(i) and (ii) of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations 2016 was also relied upon.

The appellant in Consolidated Construction Consortium Limited v. Hitro Energy Solutions Private Limited had sought an operational service from the respondents when it contracted them for the supply of light fittings. 

The contract was subsequently terminated but the respondent nonetheless encashed the cheque for advance payment.

To know more about Insolvency and Bankruptcy Code, 2016, or seek any clarification visit our website, www.4csupremelawint.com 
or contact us on our WhatsApp  (9828320572).
 #law #supremecourt #construction #energy #india #Insolvency #bankruptcylaw #debt #debtrecovery #creditors 

Dr Ajay Kummar Pandey
Advocate Supreme Court of India

663


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Can your brother and Sisters have claim over your property ?

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Are women safe at home?

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A woman is raped every 5 hours, 10 mins in Delhi

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Centre sets speed limit for vehicles in Delhi, heavy fines for over speeding

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Law and Covid

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Are you ready to die peacefully

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DO YOU HAVE WILL TO WALK ?

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सवाल: मकान मालिक या किरायेदार... किसे फायदा पहुंचाएगा केंद्र का नया कानून, जानिए प्रमुख बातें

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Do you want to earn huge money?

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WhatsApp पर तीन रेड टिक? नहीं, सरकार आपके मैसेज, कॉल रिकॉर्ड नहीं कर रही है

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Are you next victim of Spy Groom war?

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काम की बात: क्या नॉमिनी ही होता है उत्तराधिकारी? जानिए क्या कहता है नियम और क्या हैं इनके अधिकार

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My father passed away without a will. Who has legal rights to his property?

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Get paid without insurance for Covid death

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News You Can Use.

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कोरोना में पैरेंट्स को राहत:सुप्रीम कोर्ट ने कहा- स्कूल चलाने का खर्च कम हुआ, इसलिए ऑनलाइन क्लासेस की फीस घटानी चाहिए

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Big Day: Big News

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रेमडेसिविर की कालाबाजारी में प्रख्यात न्यूरो सर्जन सहित 3 गिरफ्तार, इंजेक्शन की बड़ी खेप और 36 लाख रुपये बरामद

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Are you ready?

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Can winking and Blowing kisses land you in Jail ?

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Setback for Britannia Industries as Delhi HC junks trademark infringement plea against ITC Limited

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नोएडा, गाजियाबाद से दिल्ली में लग रहे जाम पर सुप्रीम कोर्ट हुआ सख्त, जारी किया नोटिस

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UNHOLY HOLI, Will Holi land you in Jail ?

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क्रिप्टोकरेंसी को सरकार ने किया स्वीकार! कंपनियों को देना होगा हर लेन-देन का हिसाब

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Reservation more than 50 per cent is need of hour: Maharashtra

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आईटीआर में खामी रह जाने पर इनकम टैक्स 7 तरह के नोटिस जारी करता है, जानिए इनका मतलब

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Person Who Has Not Drawn The Cheque Cannot Be Prosecuted U/s 138 NI Act Even In Case Of Joint Liability: Supreme Court

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Didda Copyright Row: दिद्दा कॉपीराइट विवाद पर मुश्किल में कंगना, कोर्ट के आदेश पर एक और FIR दर्ज

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फैसला: सुप्रीम कोर्ट ने किराएदार पर लगाया एक लाख का जुर्माना, अद्भुत मामला दिया करार

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चेतावनी! 15000 रुपए का कटेगा चालान और 2 साल की होगी जेल, अगर गाड़ी में किया यह काम

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Oyo lost arbitral battle

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पत्नी कोई गुलाम या संपत्ति नहीं, पति के साथ रहने के लिए मजबूर नहीं किया जा सकता- सुप्रीम कोर्ट

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किसी को शादी के लिए झूठा वादा नहीं करना चाहिए, चाहे पुरुष हो या महिला: सुप्रीम कोर्ट

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How to jump the corporate ladder by selling Gossip at 15 Crore ?

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सुप्रीम कोर्ट की बड़ी टिप्पणी: जीवनसाथी की प्रतिष्ठा को ठेस पहुंचाना मानसिक क्रूरता के समान

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सुप्रीम कोर्ट की बड़ी टिप्पणी: जीवनसाथी की प्रतिष्ठा को ठेस पहुंचाना मानसिक क्रूरता के समान

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पिता की संपत्ति में मिलता है बराबरी का हिस्‍सा, हर बहू-बेटी को पता होने चाहिए अपने ये अधिकार

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उत्तराधिकार पर सुप्रीम कोर्ट का बड़ा फैसला, महिला का मायका पक्ष भी परिवार का हिस्सा

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Act beyond Act: CSR

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स्किन से स्किन टच के बिना सेक्सुअल असॉल्ट का मामला नहीं... हाई कोर्ट के इस फैसले के खिलाफ महिला आयोग सुप्रीम कोर्ट पहुंची

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Decriminalisation of the Limited Liability Partnership Act

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Budget 2021: Key changes in GST to help small and medium- sized businesses

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1 to 5 crore loan without colletral made easy: Budget 2021

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Is GST is becoming a headache for you.

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Moment of rare pride

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बिहार पुलिस के सर्कुल ने बिहार प्रेस बिल की याद दिला दी है

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Italy court orders Facebook to pay $5 million in damages for copying app

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Foreigner To Deposit Cash Amount For Bail

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How legal is COVID-19 vaccine ?

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WhatsApp's private chat leaked on Google, anyone can read your personal talks

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Do you know 18 must Laws for every Indian?

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Why should I trust you or your business?

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Do you need clearance from your RWA to employ your maid?

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क्या तलाकशुदा पत्नी घरेलू हिंसा अधिनियम के तहत निवास के अधिकार का दावा कर सकती है?

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SC grants Woman's Right to Residence Under the Domestic Violence Act

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Corporate War: Cookie King who fought with TATA and Ambani

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HINDU MARRIAGE ACT : DIVORCE GRANTED TO HUSBAND ON THE GROUND OF MENTAL CRUELTY CAUSED BY WIFE

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Facebook love or chat can land you in Jail

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Financer can take way Car in case of payment default

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18000 Crore Company, 8000 Crore personal worth, wife & sons living in street

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Do you love your wife and children?

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When the second marriage of a married woman / man becomes an offense under section 494

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Is Rhea Chakraborty guilty?

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Daughters have equal right in ancestral property

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Is second wife entitled for share in Property?

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How to save your hard-earned wealth from legal hassles?

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What will happen to property of Hindu after his death?

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Are you safe at home?

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Can sex with your own wife land you in jail ?

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Can you land in jail for sharing Obscene Message online in private?

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Legally speaking who discovered America?

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47 years old legal dispute finally decided

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Are you a victim of Covid-19 Goonda Raj? Part-2

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Are you a victim of Covid-19 Goonda Raj ?

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Can RWA stop your maid from coming to your home?

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Can you escape Contractual Obligation under Covid-19?

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Coronavirus: Is vaccine found for India Inc?

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Is Wife Entitled to Maintenance Even If She Runs A Business & Earns Income?

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Who will pay rent for lockdown period?

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Legal consequences of being whatsapp group admin

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