In accordance with Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC), the National Company Law Tribunal (NCLT), located in Delhi, has ruled that a petitioner cannot start the Corporate Insolvency Resolution Process (CIRP) if the parties’ business arrangement entails profit-sharing and joint participation rather than a simple operational debt. According to the Tribunal, under the IBC, such an arrangement does not create a debtor-creditor relationship.
To start the Corporate Insolvency Resolution Process (CIRP) against M/s Experio Tech Private Limited (Corporate Debtor), M/s Transline Technologies Limited (Operational Creditor) submitted an application. The issue concerned unpaid debts from a number of transactions and…
