Indemnity obligation on a guarantee is not an operational debt: NCLT [Read Order]

While dismissing the petition, the NCLT held that the petition was not maintainable under Section 9 of the IBC due to the lack of privity of contract between the Petitioner and the Respondent
Indemnity - obligation - guarantee - operational debt - NCLT - taxscan

The Chandigarh bench of the National Company Law Tribunal ( NCLT ) held that the indemnity obligation of a guarantee is not applicable in cases involving operational debt. It was observed that operational debt, under the Insolvency and Bankruptcy Code ( IBC ), includes claims for goods or services provided. It also covers debts from…

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