Quantum dispute over operational debt does not defeat Section 9 admission where debt existence and default are otherwise established.

A dispute limited to the quantum of operational debt, without denial of the debt's existence, does not negate liability under the Insolvency and Bankruptcy Code. The Tribunal treated the definition of "dispute" under Section 5(6) as concerned with the existence of the debt, and found that non-payment established default where repayment was not shown. On that basis, the Section 9 petition was admitted, CIRP was commenced, and moratorium, appointment of an Interim Resolution Professional, and public announcement were directed in accordance with the Code and regulations.

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Issues: (i) Whether the operational debt claimed by the applicant stood established and whether the corporate debtor was in default. (ii) Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted and CIRP commenced.

Issue (i): Whether the operational debt claimed by the applicant stood established and whether the corporate debtor was in default.

Analysis: The corporate debtor did not dispute the existence of the debt and only questioned the quantum. The definition of dispute under Section 5(6) of the Insolvency and Bankruptcy Code, 2016 was treated as relating to the existence of the debt, and a mere dispute on amount did not negate the admitted liability. Since repayment was not shown to have been made, default was treated as established.

Conclusion: The operational debt was held to be established and the default was held to have occurred.

Issue (ii): Whether the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted and CIRP commenced.

Analysis: Once the operational debt and default were found to be established, the statutory conditions for admission were satisfied. The Tribunal also proceeded to declare moratorium, appoint an Interim Resolution Professional, and direct public announcement in accordance with the Code and the applicable regulations.

Conclusion: The petition was admitted and the corporate insolvency resolution process was directed to commence.

Final Conclusion: The application succeeded, the corporate debtor was brought under the insolvency resolution framework, and the attendant moratorium and insolvency administration measures were triggered.

Ratio Decidendi: A dispute confined to the quantum of operational debt, without denial of its existence, does not defeat admission under Section 9 where default is otherwise established.

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