Section 9 IBC admission follows proof of debt, default, jurisdiction and limitation, triggering CIRP and moratorium.

An operational creditor's section 9 IBC application was admitted where unpaid dues were supported by invoices and a statutory demand notice, the claim was within limitation, territorial jurisdiction existed, and the corporate debtor gave no reply or effective contest. On those prima facie findings of debt and default, the NCLT directed commencement of the Corporate Insolvency Resolution Process, imposed moratorium under section 14, ordered public announcement under section 15, and appointed an interim resolution professional to take charge of the insolvency process.

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Issues: Whether the section 9 application under the Insolvency and Bankruptcy Code, 2016 was maintainable and liable to be admitted for commencement of the Corporate Insolvency Resolution Process, along with consequential moratorium and interim resolution professional directions.

Analysis: The application was filed by an operational creditor on the basis of unpaid dues evidenced by invoices and prior demand notice. The record showed that the claim was within limitation, the corporate debtor had its registered office within the territorial jurisdiction of the Adjudicating Authority, and no reply was received to the statutory demand notice. As the debt and default were prima facie established and no representation was made on behalf of the corporate debtor, the application was found fit for admission. Consequentially, moratorium under section 14 was directed, public announcement under section 15 was ordered, and an interim resolution professional was appointed to take charge of the insolvency process.

Conclusion: The section 9 application was admitted and the Corporate Insolvency Resolution Process was initiated against the corporate debtor.

Final Conclusion: The operational creditor obtained admission of its insolvency petition, with CIRP set in motion and the statutory moratorium and ancillary insolvency directions brought into effect.

Ratio Decidendi: Where an operational creditor establishes debt, default, jurisdiction, and limitation, and the corporate debtor does not successfully contest the statutory demand, the section 9 application is liable to be admitted and the insolvency framework under the Code must follow.

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