Operational debt proof failed under insolvency law as inconsistent records could not establish default or maintainability of the petition.

An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 failed because the operational creditor did not prove an unpaid operational debt or default on consistent, reliable records. Bank transactions and payment records showed receipts from the corporate debtor exceeding the principal invoices relied upon, while the creditor's adjustments were not reconciled with the documentary record. The claim also varied between invoices and e-mail correspondence, and the alleged balance remained unsubstantiated against the bank statement and invoice-wise adjustments. The Tribunal therefore found that the debt was not due and payable and dismissed the insolvency petition as not maintainable.

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Issues: Whether the operational creditor established an unpaid operational debt and default so as to maintain an application under Section 9 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The payment records and bank transactions showed that amounts received from the corporate debtor exceeded the principal invoices relied upon, and the operational creditor's adjustment of payments was inconsistent with the documentary record. The claim also varied across invoices and e-mail correspondence, and the alleged outstanding balance was not satisfactorily reconciled with the bank account statement and invoice-wise adjustments.

Conclusion: The existence of a due and payable operational debt was not established, and the application under Section 9 was not maintainable.

Final Conclusion: The insolvency petition failed for want of proof of outstanding operational debt and default, and the proceedings were brought to an end by dismissal.

Ratio Decidendi: An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 cannot succeed unless the operational creditor proves, on the basis of consistent and reliable records, that an unpaid operational debt and default actually subsist.

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