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2024 (1) TMI 586 - AT - Insolvency and BankruptcyNature of transaction between the parties as is reflected in the Agreement - Refusal of the IRP to admit the claim as Financial Debt - seeking direction to the IRP to claim as Financial Debt - Resolution Professional rejected the claim of the Appellant as Financial Creditor and categorised the claim of the Appellant as Operational Debt - HELD THAT:- It is clear that the opening part of the Agreement clearly stated that “Whereas parties of the first part as well as party of the second part have entered into an agreement (White Sugar Supply Agreement) as per which the party of the second part confirms and agrees to sell and deliver to the party of the first part 5200 M.T's of white crystal sugar S-30 grade packed in P.P. bags of 50 KG's net weight at a fixed price of 3215/- per quintal inclusive of excise duty and cess (i.e. 3020 + 195) by and before 20.11.2016 (hereinafter referred as due date).”. Thus, the transaction between the parties emanates from the White Sugar Supply Agreement. All the clauses in no manner reflect that transaction between the parties was a financial transaction and the debt due is a financial debt. Adjudicating Authority has rightly come to the conclusion that the claim which was filed by the Appellant was a claim of operational debt and the Resolution Professional has rightly treated the claim as operational debt. It is further to be noticed that the Appellant itself has filed Section 9 Application being CP No.469 of 2020 on 29.01.2020 by which time CIRP was not even commenced against the Corporate Debtor. Learned Counsel for the Appellant submits that there is no estopple against law. The factum of filing Section 9 application by the Appellant itself indicate that the Appellant itself considered it as Operational Creditor since it filed Section 9 application which got dismissed due to initiation of the CIRP against the Corporate Debtor by order dated 23.03.2023. The said conduct of the Appellant fully supports the stand taken by the Resolution Professional that the claim of the Appellant is operational debt. Thus, no error has been committed by the Adjudicating Authority in rejecting application filed by the Appellant. Appellant’s claim has rightly been held to be operational debt - there are no error in the impugned order. The Appeal is dismissed.
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