The National Company Law Appellate Tribunal (NCLAT) through a recent ruling held that enhanced rent of a leasehold property is not operational debt.
In this article, we have detailed the risks of taking a limited and narrow view of the terms “operational debt” and “operational creditor” by analyzing the existing case laws and the nature of services that may be obtained by various companies, which may not satisfy the “Input-Output” test for determining whether a person is an operational creditor.