Case Law Details
Trafigura India Private Limited Vs TDT Copper Limited (NCLAT)
NCLAT Delhi held that default of instalment of Settlement Agreement does not come within the definition of ‘operational debt’ as it does not fall within the definition of additional debt as per Section 5(21) of the IBC.
Facts-
The parties entered into the Master Sale Agreement (MSA) under which the Respondent agreed to buy and the Appellant agreed to sell a specified quantity of copper cathodes (Material). The appellant discharged its obligations under MSA but the respondent failed to make payment to the appellant. Accordingly, the parties entered into the Settlement Agreement and provided for the full and final settlement of the amounts due and payable by the Respondent to the Appellant for the supply of copper cathodes. However, the respondent failed to make the payments as decided.
Thereafter, the appellant issued a demand notice on the respondent calling upon payment of the amount. However, in the reply, the respondent denied that it owned any amount to the appellant.
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