In the present case, debt pertaining to unpaid license fee was fully covered within the meaning of ‘operation debt’ under Section 5(21), and the Adjudicating Authority committed an error in holding that the debt claimed by the Operational Creditor is not an ‘operational debt’

operational creditors are those creditors where liabilities arise from transactions on operations.

This article discusses about the main components of this Code which forms the base of this very legislation.