holder'.
Debt:
26. Section 3 (11) of the `Code', defines `debt', meaning `a liability or
obligation in respect of a claim which ... person and
includes a financial debt and operational debt'.
Default:
27. Section 3 (12) of the `Code', defines `default', meaning `non-
payment
defined in Section 5(8) of the Code is,
obviously, necessary. As noticed, while defining
"financial creditor" and "financial debt ... assigned to the expression "financial
debt". Again, the term "financial debt" has also
been defined with the expressions "means
debt due”.
6.2 It is further contended that while passing the impugned order, the
High Court has misinterpreted the definition of “debt” defined under
Section ... calculated in respect
of the amount of “debt due” and the “debt” in SARFAESI Act is defined in
Section 2(ha) . It is submitted that
Code is a definition clause. Section 3(11) defines
'debt' in following words:
"3(11) "debt" means a liability ... from any person and includes
a financial debt and operational debt;"
9. Section 3(12) defines 'default':
"3(12) "default
person to whom a
financial debt is owed”. A “financial debt” is defined by Section 5(8) as a debt
which is disbursed against consideration ... hand, an operational creditor is one to whom an operational debt is owed.
“Operational debt” under Section 5(21) is “a claim in respect
Insolvency and Bankruptcy
Code, 20163 read with expression ‘financial debt’
as defined in Section 5(8) of the Code. This issue
had arisen ... restricting the liability of Doshion Veolia,
albeit, this cannot constitute ‘financial debt’ as
defined in Section 5(8) of the Code and, therefore,
the appellant
Debt'. It is contended by the Counsel
that CCDs do not constitute Financial Debt as defined under Section 5(8) of the
Code ... Debt' and if the amount stated to be due and payable, falls within the definition
of 'Financial Debt' as defined under
defined under Section 3(11) of the Code and 'default' has
been defined under Section 3(12) of the Code, 'debt ... been defined as a
liability or obligation in respect of a claim which is due and 'default' means
non-payment of debt when
explanation to Section 138 of the Negotiable
Instruments Act defines the expression "debt or
other liability" as a legally enforceable debt or
other ... many definitions of the word debt
have been given though the word debt is not
defined in the Act. 'Debt' is defined
defined . The comparison is as under :-
Financial Debt [ Section 5 (8) ]- Operational Debt [Section
means a debt alongwith interest, if 521)] - means a claim ... 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
