Operational debt and no pre-existing dispute supported admission of a section 9 IBC petition and commencement of insolvency process.

A section 9 IBC petition was found maintainable where the operational creditor supported the claim with purchase orders, invoices, ledger entries and a balance confirmation, establishing an operational debt and default. Because the corporate debtor filed no objections despite repeated opportunities and raised no pre-existing dispute before the demand notice, the statutory requirements for admission under section 9(5)(i) were treated as satisfied. The petition was therefore admitted, corporate insolvency resolution process commenced, an interim resolution professional was appointed, and moratorium was declared.

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Issues: Whether the petition under section 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable on proof of operational debt and default, in the absence of any pre-existing dispute, so as to warrant admission and commencement of corporate insolvency resolution process.

Analysis: The operational creditor produced purchase orders, invoices, ledger entries and confirmation of balance, all of which supported the claimed outstanding liability. The corporate debtor did not file any objections despite repeated opportunities and did not raise any dispute prior to the demand notice. On the material placed, the debt was established as an operational debt and the default was shown to be due and payable. The statutory conditions for admission under section 9(5)(i) were therefore satisfied.

Conclusion: The petition was maintainable and was admitted, with commencement of corporate insolvency resolution process, appointment of an interim resolution professional, and declaration of moratorium.

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