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Issues: (i) whether the demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 was duly served on the corporate debtor; (ii) whether there was any pre-existing dispute regarding the operational debt; (iii) whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was complete, within limitation, and otherwise fit for admission.
Issue (i): whether the demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 was duly served on the corporate debtor.
Analysis: The notice was sent by registered post to the corporate debtor and its directors, and the postal receipt was on record. The documents showed service in the manner contemplated by the Code and the related application rules.
Conclusion: The demand notice was duly served.
Issue (ii): whether there was any pre-existing dispute regarding the operational debt.
Analysis: The record contained no reply disputing the debt. The correspondence exchanged between the parties showed repeated requests for payment and did not indicate any dispute about supply, quality, or quantity of the goods. The audited financial statement also acknowledged the liability.
Conclusion: No pre-existing dispute was established.
Issue (iii): whether the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was complete, within limitation, and otherwise fit for admission.
Analysis: The application was found complete in the prescribed form, the debt had fallen due within the limitation period, and the unpaid operational debt remained outstanding. The statutory requirements for admission under Section 9 were satisfied, and the proposed interim resolution professional had given consent.
Conclusion: The application was maintainable and fit for admission.
Final Conclusion: The corporate insolvency resolution process was directed to commence against the corporate debtor, moratorium was triggered, and an interim resolution professional was appointed to take charge of the insolvency process.
Ratio Decidendi: Where service of demand notice is proved, no prior dispute is shown, and the operational debt remains unpaid within limitation, the application under Section 9 of the Insolvency and Bankruptcy Code, 2016 must be admitted and CIRP commenced.