Operational debt under the Insolvency and Bankruptcy Code was established through invoices, acknowledgment, and no pre-existing dispute.

A Section 9 application under the Insolvency and Bankruptcy Code was found admissible where supply of goods under purchase orders and invoices, together with the debtor's acknowledgment, established an operational debt and operational creditor relationship. Service of the Section 8 demand notice was proved, no pre-existing dispute was raised, and the application was complete on the material before the tribunal. On that basis, the application was admitted, corporate insolvency resolution process was initiated, and moratorium under Section 14 followed, with further steps for public announcement and appointment of an interim resolution professional to proceed under the Code.

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Issues: Whether the applicant established an operational debt and operational creditor relationship under the Insolvency and Bankruptcy Code, 2016, and whether the application under Section 9 was complete and liable to be admitted with consequential moratorium.

Analysis: The supply of goods under purchase orders and invoices, together with the debtor's acknowledgment of liability, showed that the claim arose from provision of goods and therefore constituted operational debt. The notice under Section 8 was served, no notice of dispute was raised, and the application was found complete. In the absence of opposition and on the material on record, the statutory conditions for admission were satisfied. Upon admission, moratorium under Section 14 followed, while public announcement and appointment of an interim resolution professional were to be taken up in accordance with the Code.

Conclusion: The Section 9 application was admitted and corporate insolvency resolution process was initiated in favour of the applicant, with moratorium ordered under the Code.

Ratio Decidendi: A Section 9 application is admissible where the claim is shown to be an operational debt, demand notice has been duly served, no pre-existing dispute is raised, and the application is otherwise complete.

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