The Appeal was filed by the Agent being a Del Credere Agent (A Person or company that acts as a salesperson and guarantor of credit for the buyer, while receiving commission for selling goods or services for another person or company and becomes liable to pay the principal if the buyer defaults on payment) aggrieved by the Order of Hon’ble NCLT, Chennai Bench for dismissing the application u/s 7 on the grounds of non-maintainability and not falling under the purview of Financial Debt as per Section 5(8) of the IBC, 2016.
The Hon’ble Appellate Tribunal observed while dismissing the appeal that Going by the objective and scheme of the IBC, this Tribunal on the basis of surrounding facts and circumstances of the instant case in the teeth of Clause 15 of the `Del Credere Agency Agreement' and keeping in mind of a prime fact that the default which took place pertaining to the supply of goods comes within the definition of Operational Debt as per Section 5(21) of the Code, 2016 and hence, Section 9 of the Code, 2016 attracts in an unambiguous manner. Viewed in that perspective, the debt in the present case, cannot be termed as Financial Debt, as per Section 5 (8) of the Code, 2016, in the considered opinion of this Tribunal.
Reference: Hon’ble NCLAT, Chennai Bench order dated 28.08.2023 in the matter of Madras Chemicals & Polymers Vs. Vijay Aqua Pipes Pvt. Ltd.
