Security Deposit Claims Contingent on Future Obligations are Not Operational Debts

Carestream Health India Private Limited Vs Seaview Mercantile LLP (NCLAT Delhi) Introduction: In a significant ruling, the National Company Law Appellate Tribunal (NCLAT) in Delhi addressed the issue of whether a claim for a refund of a security deposit, contingent upon executing a leave and license agreement, constitutes an operational debt under the Insolvency and Bankruptcy Code (IBC), 2016. The case, Carestream Health India Private Limited (“Appellant”) vs. Seaview Mercantile LLP (“Respondent”), highlighted key aspects of operational debt and the applicability of th...