Case Law Analysis
|National Company Law Appellate Tribunal
IBC Section 9 | Minimum Guaranteed Royalty Constitutes Operational Debt Even Without Invoices: NCLAT
NCLAT rules that a contractual obligation to pay minimum guaranteed royalty qualifies as operational debt under IBC Section 9, even in the absence of invoices, if the default is admitted and exceeds ₹1 lakh. This expands the scope of operational debt to include uninvoiced but contractually mandated payments, impacting creditors' rights in insolvency proceedings.