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Issues: (i) Whether the applicant, as assignee of the original creditor, was an operational creditor entitled to maintain an application under Section 9 of the Insolvency and Bankruptcy Code, 2016; (ii) Whether there was a pre-existing dispute so as to bar admission of the application under Section 9 of the Insolvency and Bankruptcy Code, 2016.
Issue (i): Whether the applicant, as assignee of the original creditor, was an operational creditor entitled to maintain an application under Section 9 of the Insolvency and Bankruptcy Code, 2016.
Analysis: The definition of operational creditor includes a person to whom an operational debt has been legally assigned or transferred. The assignment relied upon was treated as valid, and the applicant was therefore recognised as the assignee of the operational debt due from the corporate debtor.
Conclusion: The applicant was held to be an operational creditor competent to maintain the Section 9 application.
Issue (ii): Whether there was a pre-existing dispute so as to bar admission of the application under Section 9 of the Insolvency and Bankruptcy Code, 2016.
Analysis: The objection regarding defective goods and related charges was found unsupported by documentary evidence. On the material placed before it, the existence of a real pre-existing dispute was not established, and the debt was found to be an operational debt in default.
Conclusion: No pre-existing dispute was found, and default was held to exist; the application was admissible.
Final Conclusion: The insolvency application was admitted, moratorium followed, and an interim resolution professional was appointed for commencement of the corporate insolvency resolution process.
Ratio Decidendi: A legally assigned operational debt confers operational creditor status on the assignee, and in the absence of a substantiated pre-existing dispute, a Section 9 application is admissible upon proof of operational debt and default.
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