Operational debt claim admitted after proof of default, valid demand notice service, limitation compliance, and territorial jurisdiction.

An uncontested operational debt claim under section 9 of the Insolvency and Bankruptcy Code was found maintainable because the creditor proved default through contractual and invoicing records, and the demand notice was duly served without any notice of dispute or payment from the corporate debtor. The application was also held to be within limitation, and territorial jurisdiction was established by the debtor's registered office in Delhi. On these statutory requirements being satisfied, the insolvency application was admitted under section 9(5), and the corporate insolvency resolution process, including moratorium and appointment of an interim resolution professional, was directed to commence.

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Issues: Whether the application under section 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable and liable to be admitted on proof of operational debt, default, absence of dispute, limitation, and territorial jurisdiction.

Analysis: The application was supported by the contractual and invoicing record, the demand notice was shown to have been duly served, and no notice of dispute or payment was forthcoming from the corporate debtor. The claim was within limitation as the date of default and the filing date placed the application within time. The registered office of the corporate debtor being in Delhi, territorial jurisdiction was made out. In the absence of any contest from the corporate debtor, the requirements for admission under section 9 were satisfied.

Conclusion: The application was admitted under section 9(5) of the Insolvency and Bankruptcy Code, 2016 and the corporate insolvency resolution process was directed to commence.

Final Conclusion: The proceeding culminated in initiation of insolvency resolution against the corporate debtor, with moratorium and appointment of an interim resolution professional following admission.

Ratio Decidendi: An uncontested operational debt claim supported by proof of default, valid demand notice service, and compliance with the statutory admission requirements under section 9 warrants admission of the insolvency application and commencement of moratorium.

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