Operational debt and absence of pre-existing dispute justified admission of the section 9 insolvency application.

Operational debt was proved through supply invoices, delivery challans, the admitted outstanding amount, and written acknowledgment of liability, so the section 9 application was complete and maintainable. No pre-existing dispute was shown before the demand notice; post-notice requests for time and references to business hardship did not amount to a genuine dispute over quality, existence, or quantum of debt. The application was also within limitation, as the default date and filing date fell within the statutory period. CIRP was admitted, moratorium declared, and an interim resolution professional appointed.

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Issues: (i) whether the application under section 9 was complete and maintainable on proof of operational debt and default, (ii) whether any pre-existing dispute barred admission of the application, and (iii) whether the petition was within limitation and liable to be admitted for initiation of Corporate Insolvency Resolution Process.

Issue (i): Whether the application under section 9 was complete and maintainable on proof of operational debt and default.

Analysis: The operational creditor established supply of gold bars against invoice and delivery challan, the admitted outstanding amount, and the debtor's written acknowledgment of liability. The record showed debt due and payable and non-payment on the due date, satisfying the statutory requirements for operational debt and default under the Code.

Conclusion: This issue is decided in favour of the petitioner.

Issue (ii): Whether any pre-existing dispute barred admission of the application.

Analysis: The materials showed that after the demand notice the corporate debtor admitted liability and sought time for payment, but no dispute as to quality, existence, or quantum of the debt was shown before receipt of the notice. The reliance on business hardship and market conditions did not disclose a genuine dispute prior to demand notice.

Conclusion: This issue is decided in favour of the petitioner.

Issue (iii): Whether the petition was within limitation and liable to be admitted for initiation of Corporate Insolvency Resolution Process.

Analysis: The default was recorded as having occurred on 02.02.2022 and the application was filed on 22.03.2022, well within the limitation period. The statutory prerequisites for admission under section 9 were thus found satisfied, warranting commencement of CIRP and declaration of moratorium.

Conclusion: This issue is decided in favour of the petitioner.

Final Conclusion: The insolvency application was found complete and was admitted, with CIRP initiated, moratorium declared, and an interim resolution professional appointed.

Ratio Decidendi: Where an operational debt, default, and service of demand notice are established and no pre-existing dispute exists, a section 9 application is to be admitted if it is otherwise complete and within limitation.

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