Advance receipt against future supply is Operational Debt: NCLT Mumbai

Armaco Infralinks Pvt. Ltd. Vs B. S. Ispat Pvt. Ltd. (NCLT Mumbai) NCLT Mumbai held that the Advance received by the Corporate Debtor against future supply of goods is an Operational Debt. Petition u/s. 9 of Insolvency and Bankruptcy Code admitted since Corporate Debtor failed to pay operational debt. Facts- This Company Petition is filed under section 9 of the Insolvency and Bankruptcy Code, 2016 by Armaco Infralinks Pvt. Ltd. (operational creditor), seeking to initiate Corporate Insolvency Resolution Process (CIRP) against S. Ispat Ltd. (corporate debtor). The Operational Creditor is a priva...