Section 9 insolvency admission requires unpaid operational debt, valid demand notice, no dispute, and compliance with limitation and statutory requirements.

A section 9 application is admissible where unpaid operational debt is supported by invoices and ledger entries, the demand notice is duly served, no pre-existing dispute is shown, and the claim is within limitation. On the facts, the adjudicating authority found these requirements satisfied, including acknowledgment of liability and continuing default, and admitted the application. Consequent statutory effects followed: corporate insolvency resolution process was initiated, moratorium was imposed, and the proposed resolution professional was appointed as interim resolution professional.

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Issues: (i) whether the section 9 application was complete, within limitation, and satisfied the statutory requirements for admission; (ii) whether CIRP was liable to be initiated with consequential moratorium and appointment of IRP.

Issue (i): whether the section 9 application was complete, within limitation, and satisfied the statutory requirements for admission.

Analysis: The operational creditor placed the invoices, ledger, demand notice in Form 3, and the corporate debtor's reply acknowledging liability. The adjudicating authority found that the application in Form 5 was complete, the unpaid operational debt remained outstanding, the demand notice had been duly served, and there was no notice of dispute regarding the debt. It also found that the first default arose on 23.12.2017 and continued till 18.11.2019, so the claim was not time-barred. The conditions for admission under section 9 were therefore satisfied.

Conclusion: The application was held admissible and was admitted in favour of the operational creditor.

Issue (ii): whether CIRP was liable to be initiated with consequential moratorium and appointment of IRP.

Analysis: On admission of the application, the statutory consequences under the Code followed. The proposed resolution professional was found fit for appointment, no adverse material was found, and the order directed initiation of CIRP, invocation of moratorium, and vesting of management with the IRP in accordance with the Code.

Conclusion: CIRP was initiated, moratorium was ordered, and the named professional was appointed as IRP.

Final Conclusion: The insolvency application succeeded, resulting in commencement of corporate insolvency resolution proceedings against the corporate debtor with the attendant statutory consequences under the Code.

Ratio Decidendi: A section 9 application is to be admitted where the operational debt is unpaid, the demand notice is duly served, no pre-existing dispute is shown, and the statutory requirements of the Insolvency and Bankruptcy Code, 2016 are otherwise satisfied.

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