Operational debt default proved under the Insolvency Code led to admission, moratorium, and appointment of an interim resolution professional.

An operational creditor's section 9 application under the Insolvency and Bankruptcy Code, 2016 was found complete because unpaid supply debt and default were established, a section 8 demand notice had been served, and the corporate debtor raised no reply or dispute. With no appearance from the corporate debtor, the tribunal proceeded ex parte and applied the statutory consequences under sections 13, 14, 15, 17, 18, 19 and 20. The petition was admitted, the Corporate Insolvency Resolution Process was directed to commence, moratorium was declared, and an Interim Resolution Professional was appointed.

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Issues: Whether the operational creditor's application under section 9 of the Insolvency and Bankruptcy Code, 2016 satisfied the statutory requirements for admission and initiation of the Corporate Insolvency Resolution Process, including declaration of moratorium and appointment of an Interim Resolution Professional.

Analysis: The operational debt arose from supply transactions and remained unpaid. A demand notice under section 8(1) of the Insolvency and Bankruptcy Code, 2016 was served, but no reply or dispute was raised by the corporate debtor. The application was found complete on the record, and the tribunal was satisfied that the debt and default stood established. In the absence of any appearance for the corporate debtor, the matter proceeded ex parte. The tribunal therefore invoked the statutory consequences under sections 13, 14, 15, 17, 18, 19 and 20 of the Insolvency and Bankruptcy Code, 2016 and appointed an Interim Resolution Professional.

Conclusion: The petition was admitted and the Corporate Insolvency Resolution Process was directed to commence against the corporate debtor, with moratorium declared and an Interim Resolution Professional appointed.

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