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2017 (8) TMI 509 - Tri - Insolvency and BankruptcyInitiation of Corporate Insolvency process - Insolvency and Bankruptcy Code, 2016 - unpaid operational debt as claimed by operational creditor - Held that:- The framer of the Code have also defined the expression 'Financial Debt' in section 5(8) to mean a debt which is disbursed against the consideration of time value of money. However, the framer of the Code has not included in the expression 'Operation Debt' as any debt other than the 'Financial Debt'. It is thus confined to aforesaid four categories like goods, services, employment and Government dues. In the present case, the debt has not arisen out of the provisions of goods or services. The debt has also not arisen out of employment or the dues which are payable under the statute to the Centre/State Government or local body. Therefore, the present claim of investments cannot be considered as an 'operational debt' under the Code. The provisions and scope of Section 9 including the applicable rules, forms and procedure are totally distinct and separate from that of Section 7 of the code. There is no provision in the code to convert a Section 9 application into a Section 7 application as prayed. On the contrary the Code provides that applications filed under section 7, 9 or 10, as the case may be should either be admitted or rejected in accordance with respective provisions. When the language of the code is clear and explicit the adjudicating authority has to give effect to it by adhering to the statutory requirements in toto. The provisions must be strictly followed substantially as well as procedurally. As made clear that in the present application filed under Section 9 of the Code neither there is any scope nor we have examined as to whether the applicant falls within the ambit of 'Financial Creditor'. Accordingly, leave is granted to the applicant to move under appropriate provisions of the Code, if so advised. In view of the discussions made above, once it is held that the applicant is not an 'Operational Creditor' and the debt in question not being 'operational debt', the present petition filed under Section 9 of the Code for initiation of corporate insolvency resolution Process is not maintainable and therefore rejected.
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