Operational creditor default established and CIRP admitted where debt remained undisputed and statutory requirements were satisfied

An operational creditor's application for commencement of CIRP was admitted because default was established through invoices, correspondence, ledger entries and proof of partial payment, while the corporate debtor, though served, filed no objection or reply. The NCLT found the debt and default undisputed, and the application compliant with the Insolvency and Bankruptcy Code, 2016 and the prescribed rules. The proposed resolution professional had furnished the required written communication and was found eligible, so the interim resolution professional was appointed and moratorium followed.

---

---

Issues: Whether the operational creditor established default and met the requirements for admission of the application for commencement of the corporate insolvency resolution process.

Analysis: The operational creditor supported the claim with invoices, correspondence, ledger entries and proof of partial payment, while the corporate debtor did not appear despite service and did not file any objection or reply. On the materials placed, the debt and default remained undisputed and the application was found to be in accordance with the applicable provisions of the Insolvency and Bankruptcy Code, 2016 and the prescribed rules. The proposed resolution professional had also furnished the requisite written communication and was found eligible for appointment.

Conclusion: The application was admitted and the corporate insolvency resolution process was initiated against the corporate debtor, with appointment of the interim resolution professional and declaration of moratorium.

Final Conclusion: The proceeding culminated in initiation of insolvency resolution against the corporate debtor with the statutory moratorium and consequential directions coming into effect.

Ratio Decidendi: An operational creditor's application is liable to be admitted where default is established, the claim remains undisputed, and the petition otherwise satisfies the statutory requirements for initiation of corporate insolvency resolution process.

---