company as defined under Section 3(7) of the IB Code.
Section 3(11) of the IB Code defines a "debt ... relating to any debt shall be deemed to have
been stayed", and it applies only to "debt" as defined under
person to
whom a financial debt is owed and a financial debt is defined in Section
5(8) to mean a debt which is disbursed ... default has been
defined to mean non-payment of debt. The debt has been defined to mean a
liability or obligation in respect
submitted that the said provision defines "operational
debt" as a claim in respect of provision of the goods and services, including
employment ... under the IBC, and would
consequently qualify as "operational debt" (as defined under
the TBC) and therefore the full amount of such
contractor, which served to act as a
"bonded debt" (as defined ... burden of proof" to prove a debt is not
a bonded debt lies upon the creditor, ie the
contractor/employer.
Section
learned Counsel appearing for the Appellant
submitted that, the term "debt" defined under the IBC includes the term
5/22
::: Uploaded ... person and
includes a financial debt and operational debt. Section 2(c) of the
MPID Act defined "deposit" which includes any receipt
State Bank Of India vs United India Insurance Co. Ltd. & Anr. on 10 March
State Bank Of India vs United India Insurance Co. Ltd. & Anr. on 10 March
debt
amount to the Corporate Debtor by the Financial
Creditor and does not fulfill the essential ingredients of
a financial debt as defined under Section ... buildings.
(iv) While determining, whether a debt falls within the
definition of financial debt as defined under Section 5(8)
of the Code, mere existence
been quoted above. Section 5(8) defines 'financial debt' to
mean "a debt alongwith interest if any which is disbursed
against ... failed to
establish the existence of a "financial debt" as defined under Section 5(8) of
the Code. The alleged transaction lacks essential
being returned for insufficiency of funds.
Aiyar's Judicial Dictionary defines debt as
follows:"Debt is a pecuniary liability. A sum
payable ... money demand." Lindey L.J in Webb v.
Strention15 defined debt as "... a sum of
money which is now payable or will become
