Limitation and proof of operational debt govern Section 9 insolvency applications; defective documents and delay can defeat maintainability.

A Section 9 insolvency application must be filed within three years from the date of default, with Article 137 of the Limitation Act governing the period; on the stated dates, the claim fell outside limitation. The operational debt also had to be supported by reliable contractual and documentary proof, but the relied-upon agreement was unsigned on most pages and the invoices lacked signatures or proof of service, so the debt was not established on a valid footing. The stated result was that the application failed on both limitation and maintainability and no insolvency process was admitted.

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Issues: (i) Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation; (ii) Whether the petition was maintainable in view of the defective and unsupported contractual and documentary basis for the claimed operational debt.

Issue (i): Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was barred by limitation.

Analysis: The debt was treated as having fallen due on 01.04.2015, while the petition was filed on 15.05.2019. The limitation period for applications under the Code is three years from the date of default, and Article 137 of the Limitation Act, 1963 applies. On that basis, the claim was beyond the prescribed period.

Conclusion: The application was barred by limitation and the issue was decided against the petitioner.

Issue (ii): Whether the petition was maintainable in view of the defective and unsupported contractual and documentary basis for the claimed operational debt.

Analysis: The agreement relied upon was found to be unsigned on most pages and not shown to have been freshly executed after the corporate debtor's change of name. The invoices were also unsupported by signatures or proof of service. In these circumstances, the claimed debt was not established on a valid and reliable footing.

Conclusion: The petition was held to be not maintainable and this issue was decided against the petitioner.

Final Conclusion: The insolvency application failed both on limitation and on maintainability, and no insolvency process was admitted against the corporate debtor.

Ratio Decidendi: A Section 9 application must be filed within three years from the date of default and must be supported by reliable, valid documents establishing the operational debt; failing either requirement renders the petition liable to dismissal.

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