The Supreme Court on Wednesday (August 12) held that claims for damages arising from breach of contract cannot be treated as "operational debt" under the Insolvency and Bankruptcy Code, 2016, unless previously adjudicated and crystallized by a competent court. “It is a settled position of law that damages, whether liquidated or unliquidated, cannot be treated as operational debt unless and until they are assessed and crystallized by way of adjudication by a court of competent jurisdiction. The respondent suspended the work and later claimed damages caused to it due to the breach of contract by the Appellant. “…disputes that arise from breach of the contract cannot give rise to an operational debt till the time the debt becomes crystallized and legally enforceable. For Respondent(s) Mr. Nitin Bhardwaj, AOR Mr. Akash Mehta, Adv.