Case Law Details
Smartworks Coworking Spaces Private Limited Vs Turbot Hq India Private Limited (NCLAT Delhi)
NCLAT Delhi held that when Agreement was admittedly executed between the parties, signed by both the parties and acted upon, mere fact that it not being engrossed on stamped papers shall have no adverse consequence on the claim of the Operational Creditor.
Facts- This Appeal by an Operational Creditor has been filed challenging the Order dated 08th April, 2022 by which order Section 9 Application of I&B Code, 2016 filed by the Appellant has been rejected holding that dues claimed by the Appellant are not operational debt, Agreement dated 17th August, 2018 is not a registered agreement and is also not duly stamped document.
Conclusion- In the present case, when Agreement was admittedly executed between the parties, signed by both the parties and acted upon, mere fact that it not being engrossed on stamped papers shall have no adverse consequence on the claim of the Operational Creditor. We thus are of the view that the Adjudicating Authority erred in determining the 3rd point against the operational creditor.
In view of the following discussion, we hold that Appellant has proved that debt claimed by the Appellant in Section 9 Application was operational debt. Further the agreement dated 17th August, 2018 was not compulsorily registrable and agreement having not been executed on Rs. 100 Stamp Paper was inconsequential, the agreement having been acted upon and the Corporate Debtor having entered into possession of the premises in pursuance of the Agreement.
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