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2019 (11) TMI 619 - Tri - Insolvency and BankruptcyMaintainability of application - initiation of CIRP - Corporate debtor failed to make repayment of outstanding amount - scope of 'Operational Debt' - HELD THAT:- The definition of the term “operational debt” has four components, namely: (1) goods; (ii) services; (iii) employment; and (iv) government dues - On the facts of our case, we would be concerned with the first two, that is provision of goods or services. We are of the view that supply of goods or services would mean such supply as is the input for either manufacturing or trading, in a business context, and that there should be a direct nexus between such input and output, for example and illustratively speaking, supply of raw material for manufacturing or goods for trading; or such services as are inextricably linked to the business as in supply of labour or maintenance services. The debt arising out of non-payment of lease rent does not fall under the definition of “operational debt” as defined u/s 5(21) of the Code of 2016 (even though it may otherwise be a debt), and the petitioner cannot be termed as an “Operational creditor” within the meaning of section 5(20) and for the purpose of the Code of 2016. The matter does not require interference - petition dismissed.
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