The tribunal noted that Kumar’s obligation to render services on the second day was conditional upon receiving the full payment, which he did not.
Furthermore, the NCLT observed that any claim arising from the alleged breach of contract would be considered liquidated damages and not operational debt under the IBC.
“However, there is no documentary evidence on record to indicate that these conditions were fulfilled. Consequently, the obligation to render services on the second day did not materialize as the necessary preconditions were not met. The lack of performance on the part of the OC to provide the required services negates the assertion of an operational debt,” it said
