Settlement Agreement Breach Not Grounds for CIRP under I&B Code

Amrik Cranes and Infrastructure Vs Simplex Infrastructures Limited (NCLT Kolkata) Breach of the terms and conditions of payment in accordance with a settlement agreement does not constitute an “Operational Debt” as per the definition under Section 5 (21) of the I&B Code and accordingly that cannot be a ground to trigger CIRP against the Corporate Debtor. The National Company Law Tribunal (NCLT) Kolkata recently deliberated on a crucial matter involving Amrik Cranes and Infrastructure (Operational Creditor) versus Simplex Infrastructures Limited (Corporate Debtor). This case pertained t...