Operational debt and no dispute notice justified admission of insolvency proceedings, triggering moratorium and resolution process steps.

An operational creditor's application under the Insolvency and Bankruptcy Code was admitted because the debt was supported by acknowledgement, default was shown, and the corporate debtor raised no notice of dispute. The statutory conditions for initiating corporate insolvency resolution proceedings were treated as satisfied, so the application was allowed. On admission, moratorium commenced, the corporate insolvency resolution process was set in motion, public announcement was directed, and the proposed interim resolution professional was to perform duties in accordance with the Code.

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Issues: (i) Whether the operational creditor established the existence of operational debt, default, and absence of notice of dispute so as to warrant admission of the petition under the Insolvency and Bankruptcy Code, 2016. (ii) What consequential orders would follow upon admission, including moratorium and appointment of the interim resolution professional.

Issue (i): Whether the operational creditor established the existence of operational debt, default, and absence of notice of dispute so as to warrant admission of the petition under the Insolvency and Bankruptcy Code, 2016.

Analysis: The petition was filed as an operational creditor's application under Sections 8 and 9. The debt claimed was supported by acknowledgement, and no notice of dispute was raised by the corporate debtor. The statutory preconditions for initiation of corporate insolvency resolution proceedings were treated as satisfied.

Conclusion: The petition was admitted in favour of the operational creditor.

Issue (ii): What consequential orders would follow upon admission, including moratorium and appointment of the interim resolution professional.

Analysis: Upon admission, the order directed commencement of the corporate insolvency resolution process, operation of moratorium, public announcement, and performance of duties by the proposed interim resolution professional in accordance with the Code.

Conclusion: Moratorium commenced, the insolvency process was set in motion, and the proposed interim resolution professional was to act in terms of the Code.

Final Conclusion: The insolvency application was allowed and the corporate insolvency resolution process was initiated against the corporate debtor with the attendant statutory consequences.

Ratio Decidendi: Where an operational debt and default are established and no notice of dispute is raised, the adjudicating authority may admit the petition and trigger the statutory insolvency framework including moratorium and related process steps.

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