Facts & Background:

• National Agriculture Cooperative Marketing Federation Limited (NAFED), a multi-state cooperative society, was the Appellant/Financial Creditor and owner of a plot at Bhiwadi, Rajasthan, measuring 8444 sq. mts. open and 1311 sq. mts. constructed area.
• Synergy Petro Products Private Limited, incorporated under the Companies Act, 1956 on 19.09.2001, with its registered office at Lajpat Nagar-4, New Delhi, was the Respondent/Corporate Debtor.
• The Appellant had leased an industrial property in Bhiwadi, Rajasthan, to the Respondent through a leave and license agreement on 17.08.2005. This agreement was later replaced by an agreement dated 03.07.2006, stipulating a revised license fee structure, including periodic increments for possession and occupation of the premises.
• The Corporate Debtor fulfilled payment obligations initially but defaulted from April 2007 onwards. However, several reminders and a legal notice were issued, and the premises were wrongfully continued to be occupied after the agreement was terminated.
• The matter was referred to arbitration, which resulted in an Arbitration Award dated 10.07.2019 directing the Respondent to pay ₹3,14,36,864/—to the Appellant. However, the corporate debtor did not comply with the arbitration award.
• The Appellant filed an application under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, before the National Company Law Tribunal (NCLT), Principal Bench, New Delhi, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the Respondent. The NCLT dismissed the application.
• The Appellant, aggrieved by the NCLT’s order dated 31.05.2021, filed the present appeal before the National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, under Section 61(1) of the IBC, 2016.
  

Main Issue:

• Whether the rental lease agreement between the parties constituted a 'Financial Debt' or an 'Operational Debt?