Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Operational Creditor Petition Rejected for Lack of Financial Institution Certificate The National Company Law Tribunal, Mumbai, rejected a Creditor Petition under Section 9 of the Insolvency and Bankruptcy Code due to the operational ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Operational Creditor Petition Rejected for Lack of Financial Institution Certificate
The National Company Law Tribunal, Mumbai, rejected a Creditor Petition under Section 9 of the Insolvency and Bankruptcy Code due to the operational creditor's failure to submit a certificate from the Financial Institution confirming non-payment of the operational debt by the Corporate Debtor, as required by Section 9(3)(c) of the Code. Despite being given an opportunity, the creditor did not provide the necessary certificate, citing difficulties in obtaining it from an overseas bank. The Tribunal emphasized the mandatory nature of this requirement, leading to the rejection of the petition for non-compliance.
Issues: Failure to file certificate from Financial Institution confirming unpaid operational debt as required under Section 9(3)(c) of the Insolvency and Bankruptcy Code.
Analysis: The judgment by the National Company Law Tribunal, Mumbai, involved the rejection of a Creditor Petition filed under Section 9 of the Insolvency and Bankruptcy Code due to the failure of the operational creditor to provide a certificate from the Financial Institution confirming the non-payment of the operational debt by the Corporate Debtor, as mandated by Section 9(3)(c) of the Code. The Tribunal noted that despite being given time to furnish the required document, the petitioner's counsel failed to provide the necessary certificate. The counsel argued that it was impossible to obtain the certificate as the bank of the operational creditor was situated outside India, requesting an exemption from this requirement.
Upon examining the provisions of Section 9 of the Insolvency and Bankruptcy Code, the Tribunal emphasized the mandatory nature of filing the certificate from the Financial Institution to demonstrate the non-payment of the operational debt in question. Since the operational creditor failed to annex a copy of the required certificate as per Section 9(3)(c) of the Code, the Tribunal concluded that the petition was deficient and therefore liable to be rejected. Consequently, the Tribunal issued an order rejecting the petition due to the non-compliance with the statutory requirement of providing the certificate from the Financial Institution confirming the unpaid operational debt, as stipulated under Section 9(3)(c) of the Insolvency and Bankruptcy Code.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI Drafter ✕
TaxTMI 
