Operational debt and default proved by unrebutted records led to admission of the insolvency application.

Operational debt and default were treated as established where the creditor supported the claim with purchase orders, invoices, e-way bills, delivery acknowledgements, and the statutory demand notice, while the corporate debtor filed no reply despite opportunity. On that unrebutted material, the Bench found that the section 9 requirements were satisfied and that the petition was within limitation. The section 9 application was admitted and corporate insolvency resolution process was ordered against the corporate debtor.

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Issues: Whether the operational creditor had established debt and default so as to warrant admission of the section 9 application and commencement of corporate insolvency resolution process.

Analysis: The application was supported by purchase orders, invoices, e-way bills, delivery acknowledgements, and the statutory demand notice. The corporate debtor did not file a reply despite opportunity, and the claim therefore remained unrebutted. On the material placed, the Bench found that operational debt and default stood demonstrated and that the petition had been filed within limitation. The statutory requirements for admission were thus satisfied.

Conclusion: The section 9 application was admitted and corporate insolvency resolution process was ordered against the corporate debtor.

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