Mobilization advance given to corporate debtor is operational debt

Athena Demwe Power Ltd. Vs Abir Infrastructure Private Limited (NCLAT Delhi) Held that the mobilization advance given by the Appellant to the Corporate Debtor is clearly an Operational Debt and the Adjudicating Authority committed error in rejecting the claim of the Appellant as an Operational Debt. Facts- Appellant awarded a contract to the Corporate Debtor. Accordingly, a mobilization advance of Rs. 7,48,40,06,136/- was transferred by the Appellant to the Corporate Debtor through the Bank Transfer. Corporate Debtor had issued Corporate Guarantee in favour of the Appellant, which was extended...