Acknowledged operational debt and limitation extension supported admission of a section 9 insolvency petition.

An operational creditor's section 9 application under the Insolvency and Bankruptcy Code was treated as maintainable where invoices, reminder letters, admissions of liability, and a later memorandum of understanding showed acknowledged dues and continued default. That acknowledgment extended the limitation period, so the claim was not time-barred and could be admitted. Jurisdiction was also accepted because the corporate debtor's registered office was in Jaipur. On those findings, debt and default were accepted and initiation of the corporate insolvency resolution process, with moratorium and appointment of the interim resolution professional, followed.

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Issues: Whether the operational creditor's application under section 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable and whether the claim was barred by limitation.

Analysis: The application was supported by invoices, reminder letters, the respondent's admissions of liability, and a memorandum of understanding by which the respondent agreed to pay the outstanding amount within a stipulated period. The admitted liability and subsequent acknowledgment of dues were treated as extending the limitation period, and the claim was held to fall within the law of limitation. The record also showed default in payment of the operational debt, and the registered office of the corporate debtor being in Jaipur conferred jurisdiction on the Tribunal to entertain the petition.

Conclusion: The application was held to be maintainable, the debt and default were accepted, and initiation of the corporate insolvency resolution process against the corporate debtor was directed.

Final Conclusion: The petition succeeded and the corporate debtor was brought under the insolvency resolution framework, with moratorium and appointment of the interim resolution professional following admission.

Ratio Decidendi: An acknowledged operational debt, reinforced by subsequent acknowledgment and a payment agreement, can be treated as within limitation for purposes of admission under section 9 of the Insolvency and Bankruptcy Code, 2016.

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