Operational debt computation and invoice absence do not defeat maintainability of a Section 9 insolvency application.

The appellate tribunal held that a Section 9 insolvency application could not be rejected on the ground that no computation of operational debt was on record where the rejoinder contained the calculation statement and supporting particulars. It further clarified that invoices are not a mandatory pre-condition for maintainability if the debt is otherwise supported by relevant documents and the demand notice. As the finding on absence of computation was erroneous and the omission of invoices was not ative, the matter was sent back for fresh consideration on the full pleadings and evidence, and the company petition was restored.

---

---

Issues: Whether the dismissal of the Section 9 application was liable to be set aside on the grounds that the calculation of the claimed debt was available on record and that absence of invoices by itself did not render the petition non-maintainable.

Analysis: The appellate tribunal found that the rejoinder contained the calculation statement and supporting details showing how the claimed amount of operational debt was worked out, so the finding that no computation had been placed on record was erroneous. It also accepted that the existence of invoices is not a mandatory pre-condition for maintaining an application under the insolvency code where the debt is otherwise supported by the relevant documents and demand notice. In view of these errors, the matter required fresh consideration by the adjudicating authority on the full pleadings and evidence.

Conclusion: The impugned order was set aside and the company petition was restored to the tribunal for reconsideration.

---