Indemnity obligations under a guarantee do not constitute operational debt: NCLT

Agarwal Foundries Private Limited Vs POSCO E&C India Private Limited (NCLT Chandigarh)

In the case of Agarwal Foundries Private Limited vs. POSCO E&C India Private Limited, filed before the National Company Law Tribunal (NCLT) Chandigarh, several critical legal issues were deliberated concerning the applicability of the Insolvency and Bankruptcy Code, 2016 (IBC), particularly under Section 9, and the interpretation of operational debt and guarantor liability. Here’s a detailed summary of the case and its outcome:

Background and Petitionerâ€

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