# In the matter of Manas Vyapar Private Limited

> NCLT judgment dated 2024-10-29. Citation: TCN-2024-NCLT-00325. The case involves a Company Petition (IB)-1139(MB)/C-III/2022 filed by M/s Kataria…

- **Court:** NCLT
- **Order date:** 29 Oct 2024
- **Citation:** TCN-2024-NCLT-00325
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/manas-vyapar-private-limited-29633b19

## Summary

### Background

The case involves a Company Petition (IB)-1139(MB)/C-III/2022 filed by M/s Kataria Infrastructure Corporation (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Manas Vyapar Private Limited (Corporate Debtor) for resolving a default in repayment of an operational debt of Rs. 1,00,00,000/-. The Operational Creditor claimed to have entered into an oral agreement with the Corporate Debtor for an "Operation and Management" Contract for a windmill, advancing Rs. 1,00,00,000/- on 21.03.2008, which was never executed. The Corporate Debtor acknowledged the advance in its financial statements until 2017-2018 but later started writing it off. The Operational Creditor issued a demand notice on 20.06.2022, which went unanswered.

## Facts

M/s Kataria Infrastructure Corporation (Operational Creditor) filed a petition against M/s Manas Vyapar Private Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016, for a default of Rs. 1,00,00,000/-. The Operational Creditor claimed that it had entered into an oral agreement with the Corporate Debtor for an "Operation and Management" Contract for a windmill project in Village Gorera, Rajasthan. On 21.03.2008, the Operational Creditor advanced Rs. 1,00,00,000/- to the Corporate Debtor. However, the agreement was never executed. The Corporate Debtor reflected the advance in its financial statements under the head 'Advance Received Against Project to be implemented' until 2017-2018, after which it started writing off Rs.

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## Issues and analysis

### Issue 1: Whether the debt of Rs. 1,00,00,000/- qualifies as an 'operational debt' under Section 5(21) of the …

**Ratio:** An 'operational debt' means a claim in respect of the provision of goods or services. An

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**Reasoning:** The Tribunal reasoned that the advance of Rs. 1,00,00,000/- was made to operate and

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**Interpretation:** Section 5(21) of the IBC defines 'operational debt' broadly to include claims

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**Application:** The Tribunal applied the definition of 'operational debt' to the facts,

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## Parties

- **Judges:** LAKSHMI G…; Charanjeet Singh…
- **Appellants:** M/s KATARIA…
- **Respondents:** M/s MANAS VYAPAR…

## Timeline

- **2008-03-21 — Advance P…**: Operational Creditor advanced Rs. 1,00,00,000/-…
- **2017-01-01 — Corporate Debtor Starts…**: Corporate Debtor started writing off Rs.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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