Operational debt and default established: Section 9 application admitted and CIRP commenced with moratorium.

An operational creditor succeeded in showing supply of goods, an operational debt, service of a demand notice, and continuing default, while the corporate debtor failed to dislodge the claim on merits. On that basis, the Adjudicating Authority found the statutory requirements for admission under Section 9 of the Insolvency and Bankruptcy Code, 2016 satisfied and admitted the application. Corporate Insolvency Resolution Process was directed to commence, with appointment of the proposed Interim Resolution Professional and the attendant statutory consequences, including moratorium and vesting of management in the IRP.

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Issues: Whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable and whether the statutory requirements for admission and commencement of Corporate Insolvency Resolution Process were satisfied.

Analysis: The operational creditor established supply of goods, existence of an operational debt, service of demand notice, and continuing default in payment. The Corporate Debtor did not dislodge the claim on merits and the Adjudicating Authority found that the conditions prescribed for admission under Section 9 stood fulfilled. On that basis, the Tribunal admitted the petition, appointed the proposed Interim Resolution Professional, and directed commencement of CIRP with consequential statutory consequences including moratorium and vesting of management in the IRP.

Conclusion: The application under Section 9 was admitted and CIRP was directed to commence against the Corporate Debtor.

Ratio Decidendi: Where an operational creditor proves an operational debt, default, and due service of the demand notice, and no valid defence defeats the claim, the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 is liable to be admitted with commencement of CIRP and attendant statutory consequences.

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