Unpaid licence fee is an operational debt under IBC: Five-member Bench of NCLAT decides

The Bench also overruled two previous judgments, holding that they did not dwell upon the correct meaning of the expression ‘service’ used in Section 5(21) of the Code.
Ashok Bhushan and NCLAT
Ashok Bhushan and NCLAT

The National Company Law Appellate Tribunal (NCLAT) has held that a claim for payment of license fee for use and occupation of immovable premises for commercial purposes is an operational debt within the meaning Section 5(21) of the Insolvency & Bankruptcy Code (IBC) [Jaipur Trade Expocentre Private Limited v. M/s Metro Jet Airways Training Private Limited].

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