Section 9 insolvency admission follows a complete application and admitted default, triggering moratorium and resolution process.

A section 9 Insolvency and Bankruptcy Code application was treated as maintainable because it was defect free, the corporate debtor admitted liability, and the record showed non-payment of operational debt. On that basis, the statutory conditions for admission were satisfied and the application was admitted. Admission triggered the corporate insolvency resolution process, commencement of moratorium, public announcement, and appointment of an interim resolution professional to collate claims and facilitate constitution of the committee of creditors.

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Issues: Whether the application under section 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable and liable to be admitted, and what consequential directions followed on admission.

Analysis: The application was found to be defect free. The corporate debtor had admitted the liability and the record showed non-payment of the operational debt. In these circumstances, the statutory requirements for admission of a section 9 application were satisfied. On admission, the Code required commencement of the corporate insolvency resolution process, declaration of moratorium, public announcement, and appointment of an interim resolution professional for collation of claims and constitution of the committee of creditors.

Conclusion: The application was admitted, corporate insolvency resolution process was initiated, moratorium commenced, and the interim resolution professional was appointed with consequential directions for public announcement and claim verification.

Ratio Decidendi: Where an operational creditor's section 9 application is complete and default is admitted, the adjudicating authority must admit the application and trigger the statutory insolvency process, including moratorium and appointment of an interim resolution professional.

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