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Non-payment of electricity bills and property taxes by respondent under agreement didn’t amount to operational debt

October 14, 2020[2020] 120 taxmann.com 168 (NCLT - Mum.)
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IBC: Petitioner leased out its property to respondent by executing a tenancy agreement for running a Restaurant, Bar and Lounge Business - Said agreement expired, pursuant to which respondent discontinued business and handed over possession of said premises to petitioner - However, respondent defaulted in payment of due rent for said property, municipal assessment bills, electricity bill, water bill etc. - Consequently, petitioner filed instant CIRP application claiming operational debt from respondent

• Held, Operational Debt would be related only to four categories as specified in Section 5(21), like goods, services, employment and Government dues an since, claim of petitioner was related to non-payment of electricity bills and property taxes payable by respondent to petitioner under business conducting agreement and did not relates to any goods or services provided by petitioner, claim of petitioner therefore, would not fall under definition 'Operational Debt'.

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