IBC: Immovable property Lease rent dues are not Operational Debt

Mr. M. Ravindranath Reddy Vs Mr G. Kishan & Ors. (NCLAT)

Whether a landlord by providing lease, will be treated as providing services to the corporate debtor, and hence, an operational creditor within the meaning of Section 5(20) read with Section 5(21) of the ‘Insolvency and Bankruptcy Code, 2016?

For an amount to be classified for an operational debt under I&B Code, 2016, it is provided:

Firstly, the amount falls within the definition of “claim” as defined under Section 3(6) of the Code;

Secondly, such a claim should claim within the confines of the definition of a ‘debt’ as defined under Section 3(11), meaning it should be by way of a liability or obligation due from any person;

Please become a Premium member. If you are already a Premium member, login here to access the full content.