Agent not liable for default of client of operational creditor: NCLT

The NCLT said that since the operational creditor was the principal, the obligation was to recover from the client and not the agent, unless the agent had failed to perform a contractual duty.
NCLT, Mumbai
NCLT, Mumbai

The National Company Law Tribunal (NCLT) Mumbai recently dismissed a petition filed by The Hindu Group Publishing Private Limited (TGH), seeking to initiate a Corporate Insolvency Resolution Process (CIRP) against Deadline Advertising Private Limited (DAPL) on the ground that the dues payable by DAPL could not be considered operational debt.

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