Section 9 insolvency admission stands where admitted debt crosses the threshold and final quantum is left for claims collation.

Admission of a Section 9 insolvency application was upheld where the corporate debtor had admitted a debt above the statutory threshold. At the admission stage, the adjudicating authority was not required to determine the final correct quantum of debt, because that question could be examined later during collation of claims by the resolution professional. Since the admitted amount satisfied the threshold requirement, no error was found in the admission order, and the challenge failed.

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Issues: Whether the admission of the Section 9 application was liable to be interfered with on the ground that the debt amount was disputed and the admitted amount was said to be incorrect.

Analysis: The application under Section 9 of the Insolvency and Bankruptcy Code, 2016 had been admitted on the basis of an admission by the corporate debtor for an amount above the statutory threshold. At the stage of admission of a Section 9 application, the adjudicating authority was not required to determine the final correct quantum of debt, since that question could be examined later during collation of claims by the resolution professional. On the admitted amount, the threshold requirement stood satisfied and no error was shown in the admission order.

Conclusion: The challenge to the admission order failed and the appeal was dismissed.

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