NCLT Subsidiary Co. not an ‘Operational Creditor’ without assignment of debt by Holding Co

NCLT (Kolkatta Bench) dismisses petition filed by Chris Garrod Global India Pvt. Ltd. (‘Petitioner Co.’, subsidiary company of Chris Garrod Global Ltd., London) u/s 9 of Insolvency and Bankruptcy Code, 2016 (‘Code’) for initiating insolvency resolution process against Fabworth Promoters Pvt. Ltd. (‘Corporate Debtor’); Notes that the Corporate Debtor issued work order in favour of Petitioner Co.’s Holding Co., for procurement of consultancy services, and made part payments to Petitioner Co. for the services availed, but failed in repayment of the remaining amount which Petitioner Co. claimed to be payable to it; Upholds Corporate Debtor’s contention that in absence of assignment of debt by Holding Co. to Petitioner Co., there is no authority or reason to issue any notice or invoice to the Corporate Debtor; Observes that debt claimed by Petitioner Co. was in fact payable to the Holding Co. and hence the petition was not maintainable; Peruses definitions of ‘Operational Creditor’ and ‘Operational Debt’, holds that neither did Petitioner Co. fall within the meaning of ‘Operational Creditor’, nor did the alleged debt fall within the meaning of ‘Operational Debt’; Holds that the petition is not maintainable, however clarifies that that there is no bar in filing similar petition by Petitioner’s Holding Co. or by Petitioner Co. upon obtaining assignment of debt to its name:Kolkatta NCLT



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