Case Law Details
Jaipur Trade Expocentre Private Limited Vs Metro Jet Airways Training Private Limited (NCLAT Delhi)
We have noticed above that Section 3(33) of the Code deals with ‘transaction’. Agreement dated 15.04.2017 is fully covered within the meaning of word ‘transaction’ as defined in Section 3(33). We may also need to look into the meaning of expression ‘operation’. The word ‘operation’ is derived from the word ‘operate’. Various expressions relating to ‘operation’ and ‘operate’ have been defined. For example ‘Operating Cost’ and ‘Operating Profit or Loss’ have been defined in P Ramanatha Aiyar – Advanced Law Lexicon (6th Edition Volume 3) to the following effect:
“Operating cost. An expense incurred in the conduct of the principal activities of the enterprise. Also termed operating expense.”
“Operating profit or loss. Profit or loss arising out of the principal business of a company, before extraordinary items (such as investments) are taken into accounting.
Profit or loss made by a company through its main activity, calculated by taken operating costs away from trading profit (or adding operating expenses to its trading loss). It excludes interest on loans, returns on other investments, or any other extraordinary items.”
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