https://www.taxtmi.com/caselaws?id=784410 An appeal challenged admission of a Section 9 IBC application on grounds that advance payments were not "operational debt," default was not established, assignment was unregistered, and Section 138 NI Act proceedings were pending. Applying SC law, the Appellate Tribunal held that advances for goods/services constitute operational debt; the debtor's plea of delayed site handover was vague and unsupported, while communications seeking time and a dishonoured cheque evidenced admission of liability and default, so CIRP admission was sustained. It further held that registration of an assignment deed is not a condition precedent for a valid transfer of debt enabling the assignee to maintain Section 9 proceedings, and that Section 138 proceedings are independent and do not bar Section 9. The appeal was dismissed and the impugned order was upheld. en-us Wed, 22 Oct 2025 00:00:00 +0530 Mon, 05 Jan 2026 08:04:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=784410 An appeal challenged admission of a Section 9 IBC application on grounds that advance payments were not "operational debt," default was not established, assignment was unregistered, and Section 138 NI Act proceedings were pending. Applying SC law, the Appellate Tribunal held that advances for goods/services constitute operational debt; the debtor's plea of delayed site handover was vague and unsupported, while communications seeking time and a dishonoured cheque evidenced admission of liability and default, so CIRP admission was sustained. It further held that registration of an assignment deed is not a condition precedent for a valid transfer of debt enabling the assignee to maintain Section 9 proceedings, and that Section 138 proceedings are independent and do not bar Section 9. The appeal was dismissed and the impugned order was upheld. Case-Laws IBC Wed, 22 Oct 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=784410