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2018 (10) TMI 195 - Tri - Insolvency and BankruptcyCorporate Insolvency Resolution Process (CIRP) - whether there is Operational Debt which became due and payable by the Respondent to the Operational Creditor /Petitioner? - non-payment of debt - Held that:- In the case on hand Respondent did not submit even the PDCs. Even before the submission of PDCs there was correspondence between the petitioner and respondent in the form of e-mail which is referred to in page Nos. 39 and 40 of the Counter. There appears to be disputes between the Petitioner and Respondent for non-submission of PDCs as per MoM dated 24.04.2017. Above all whether non-submission of PDCs which are treated as securities creates any liability or obligation in respect of claim which is due from the Corporate Debtor to the Petitioner/Operational Creditor. The non-submission of PDCs by the Respondent to the Petitioner may at best amount to breach of terms of MoM but it cannot be equated with debt due and payable. Pausing for a movement even if PDCs were submitted by the Corporate Debtor to the Operational Creditor, Operational Creditor is not automatically entitled to realise those PDCs unless and until the activities mentioned in payment schedule-2 in respect of PDC-1 and PDC-2 respectively have been completed. Therefore, the non-submission of PDCs as securities or even otherwise do not amount to debt due and payable. When the debt is not due and payable Petitioner cannot treat it as a claim and cannot call it 'as operational debt'. In view of the findings there is no debt due and payable, the question of payment of the same do not arise. Therefore, there exists no operational debt which has become due and payable. When once this authority comes to the conclusion that there is no Operational Debt due and payable there is no need to dwell on the aspect whether there exist a dispute in respect of Operational debt prior to the issuance of the Demand Notice.
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