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Want to learn the process of drafting, filing, and contesting an application under section 9 of the IBC? You have arrived at the right place. Whether you are appearing for an operational creditor chasing unpaid dues or a corporate debtor facing a claim, this guide breaks down everything you need to know—step by step. From understanding the legal essentials to preparing the proper documentation, we have got you covered. This can be your go-to resource, whether you are a business owner, legal practitioner, chartered accountant, company secretary, or cost accountant navigating the IBC landscape.

Introduction

A storytime!

Vinita and I were together for a commerce project back in 9th grade, where we were supposed to sell some products at our school’s annual fair. We decided to sell organic lip balms. We were a perfect team of two. She would be the face of the product, where she would go to sell and market, and I took complete charge of inventory, managing accounts, and procuring raw materials. Our team was a total hit at our school’s annual fair. After that event, I realised that Vinita wasn’t just playing an entrepreneur, but she was one! 

Cut to 10 years later, I meet Vinita at my school’s reunion. She introduced herself as the founder of her own make-up brand, “Chini”.  I mean, did this surprise me? Of course, not. I always saw this coming someday. During our conversation, like most young entrepreneurs, she seemed extremely passionate and focused about “Chini,” which had already become a reputed cosmetic brand. She even shared how she just executed a massive order with a renowned software company, Macrohard Pvt. Ltd., worth a whopping 1 crore, which decided to gift Chini’s products to its employees on the occasion of International Men’s Day and Women’s Day! 

3 months later, she calls me with a different energy. She told me how Macrohard Pvt. Ltd. never paid her even a penny after successfully executing the order and multiple follow-ups on WhatsApp and emails. She told me hesitatingly “That was my biggest order so far, Neeli. Is there a way out?”. 

I advised her, “You know there is a more legit route that you can take, which is approaching the National Company Law Tribunal under section 9 under the Insolvency and Bankruptcy Code” (“IBC” for short). 

At first, she seemed hesitant to take this route as she was of the view that IBC was for large businesses but as I started to explain her company’s position under the IBC and all the processes, she seemed convinced and confident. 

What did I explain to her? How did she get convinced to approach the NCLT as a small business owner? 

You will know all of it as I walk you through this article step by step, from sending the initial demand notice to filing a proper application, and what happens once the case reaches the NCLT. 

Key terms

Before we get into technicalities, let us learn some terms I shall use repeatedly in this article. 

Macrohard Pvt. Ltd., a software development and support company, purchased wellness and self-care gift sets from Chini Cosmetics Pvt. Ltd., a cosmetic manufacturing and distribution company. Vide purchase orders, Macrohard Pvt. Ltd. was required to pay a sum of Rs. 1,00,00,000/- to Chini Cosmetics Pvt. Ltd. within 30 days of delivery of goods.

Chini Cosmetics delivers the goods on time and Macrohard Pvt. Ltd. accepts the invoice without any dispute. However, even after the 30-day credit period has lapsed, Macrohard Pvt. Ltd. fails to make the payment and does not respond to follow-up reminders.

In this scenario: 

• Macrohard Pvt. Ltd. is a corporate debtor. 
• Chini Cosmetics Pvt. Ltd. is an operational creditor. 
• Rs. 1,00,00,000/- which Macrohard Pvt. Ltd. owes to Chini Cosmetic is the operational debt.  
• Macrohard Pvt. Ltd. has defaulted in making payments to Chini Cosmetics Pvt. Ltd. 

Now in case Chini Cosmetics Pvt. Ltd. had initiated a summary suit against Macrohard Pvt. Ltd. for its dues, then that would be called the existence of a dispute between both the parties.  

Hope that with the help of this example, learning these concepts will be less boring! If you want to learn this in legal academic language, you can open section 3 of the IBC.  

Who can file an application under section 9? 

The provisions of this IBC shall apply— 

1. When the minimum amount of default is 1 crore,
2. Any company established under the Companies Act, 2013 or any preceding company legislation,
3. Any other company regulated by a special law currently in force,
4. Any Limited Liability Partnership (LLP) registered under the Limited Liability Partnership Act, 2008,
5. Any other incorporated entity governed by existing laws, as may be specified by the Central Government through notification,
6. Personal guarantors to corporate debtors,
7. Partnership firms and sole proprietorship firms, and
8. Individuals, except those covered under a specific clause, 

in connection with their insolvency, liquidation, voluntary liquidation, or bankruptcy, as applicable. 

Who cannot initiate CIRP 

The following entities are ineligible to apply for initiating CIRP:

1. A corporate debtor already undergoing CIRP or a pre-packaged insolvency resolution process.
2. A financial creditor or an operational creditor of a corporate debtor undergoing a pre-packaged insolvency resolution process.
3. A corporate debtor that has completed CIRP within the past 12 months from the date of application.
4. A corporate debtor for whom a resolution plan under Chapter III-A was approved within the past 12 months from the date of application. A corporate debtor or financial creditor who has violated the terms of an approved resolution plan within the past 12 months before applying.
5. A corporate debtor against whom a liquidation order has already been passed.

What is the legal framework of this application? 

An application under section 9 kicks off with a simple demand notice. 

As per section 8 of the IBC- 

1. Upon the occurrence of a default, an operational creditor may serve a demand notice to the corporate debtor or send a copy of the invoice requesting payment of the outstanding operational debt. 
2. The corporate debtor, upon receiving the demand notice or invoice, may respond within 10 days by informing the operational creditor of either:

• The existence of a dispute, if any, or provide a record showing that a suit or arbitration proceeding relating to the dispute was filed before receiving the demand notice or invoice.

Something that you should ensure here is that there should not be a pre-existing dispute between the operational creditor and the corporate debtor on the same invoice. If there is, you cannot approach the NCLT under this section. For instance, if a complaint under section 138 of the Negotiable Instruments Act, 1881, is pending adjudication before the court, you cannot initiate CIRP under the IBC.   

• The payment of the outstanding operational debt by providing an attested proof of payment, or providing an attested copy of the record showing that the operational creditor has encashed a cheque issued by the corporate debtor.

In case the corporate debtor does not respond to the said demand notice or notify of any pending dispute, the operational creditor gets the right to initiate insolvency proceedings. 

Section 9 is quite lengthy. Thus, let us divide this section into multiple questions and understand it better. 

1. Who can file?

An operational creditor 

2. When can it be filed?

After the expiry of 10 days from the date of delivery of the demand notice, if the corporate debtor fails to:

• Repay the unpaid operational debt, or
• Provide notice of dispute.

3. Application filing:

To be filed before the NCLT 

Must be filed along with:

• Proof of default.
• A copy of the demand notice served under section 8.
• An affidavit confirming no notice of dispute was received.
• Certificate from financial institutions (if any) confirming non-payment.
  

4. NCLT’s role:

        – Within 14 days, the NCLT may either:

• Admit the application if all criteria are met and no dispute exists 
• Reject the application if:

  – Debt is disputed; 

  – The application is incomplete; 

  – Debt is not due; 

  – No default has occurred.

The 14-day timeline is directory and not mandatory. In practice, it usually gets extended. 

5. Moratorium and appointment of IRP:

      – Once the application is admitted, a moratorium is declared.

      – An Interim Resolution Professional (IRP) is appointed

• As per the Insolvency and Bankruptcy (Adjudication of Authority) Rules, 2016 (“Rules”)- 

– Demand Notice shall be as per Form 3 of the Rules; 

– Copy of an invoice attached with the notice shall be as per Form 4 of the Rules; and 

– Application under S.9 of the IBC to the NCLT shall be as per Form 5 of the Rules. 

Let us now take forward Chini’s case and proceed. 

Here are the facts in case you have forgotten about them:

Macrohard Pvt. Ltd., a renowned software development company, approached Chini Cosmetics, a cosmetic manufacturer and distributor to supply self-care and makeup gift sets on the occasion of International Men’s Day and International Women’s Day celebrations at its office. It was agreed between the parties that all invoices shall be cleared within 30 days from the date of their receipt. 

By 3rd March 2025, Chini Cosmetics delivered goods worth Rs. 1 crore to Macrohard Pvt. Ltd. Between 1st February 2025 and 3rd March 2025, various invoices were raised, but Macrohard failed to pay even after repeated email reminders and follow-up calls.

How to draft a demand notice? 

Before we proceed to learn how to draft the application, we shall first learn how to draft a demand notice. 

But do you know why should you send such a notice? Or rather why is it mandatory under the IBC? 

That is because it gives a corporate debtor one last chance to pay or to raise a dispute before directly approaching the court. This step not only saves legal costs but also helps maintain business relationships and shows that you acted fairly.  

In short, it is a final nudge to get your payment without approaching the court and a prerequisite to show the court you tried. It is pertinent to mention here that such a notice shall be sent 10 (ten) days before the filing of an application under section 9 of the IBC. 

A demand notice, like any other letter, starts with the date and details of the recipient and the addresser, that is, their respective names and their registered office address. 

3rd March 2025

To, 

[Insert name and registered office address of corporate debtor]

Macrohard Pvt. Ltd. 

Airoli, Navi Mumbai- 400 122 

From, 

[Here name and registered office address of the operational creditor] 

Chini Cosmetics Pvt. Ltd. 

Goregaon East, Mumbai- 400 063

Clearly, state the purpose for which you are addressing this notice. Followed by the salutation.  

Subject: Demand notice/invoice demanding payment in respect of unpaid operational debt due from [corporate debtor] under the IBC. 

Madam/Sir, 

1. This letter is a demand notice demanding payment of an unpaid operational debt due from you i.e. Macrohard Pvt. Ltd.

In the next paragraph, give out particulars of operational debt such as the total amount due, the amount claimed as default and the date on which default occurred, a law under which the amount is due, etc. 

2. Please find particulars of the unpaid operational debt below: 

PARTICULARS OF OPERATIONAL DEBT
1.	TOTAL AMOUNT OF DEBT, DETAILS OF TRANSACTIONS ON ACCOUNT OF WHICH DEBT FELL DUE,  AND THE DATE FROM WHICH SUCH DEBT FELL DUE	Rs. 1,10,00,000/- (Rupees one crore ten lakhs only) including interest as of 24th December 2025  On account of the sale of goods in the ordinary course of business
2.	AMOUNT CLAIMED TO BE IN DEFAULT AND THE DATE ON WHICH THE DEFAULT OCCURRED (ATTACH THE WORKINGS FOR COMPUTATION OF DEFAULT IN TABULAR FORM)	Rs. 1,10,00,000/- (Rupees one crore ten lakhs only) including interest to the tune of Rs. 10,00,000/-.  Default occurred from 3rd March as Macrohard Pvt. Ltd. failed to make payment in connection with the dues.
3.	PARTICULARS OF SECURITY HELD, IF ANY, THE DATE OF ITS CREATION, ITS ESTIMATED VALUE AS PER THE CREDITOR. ATTACH A COPY OF A CERTIFICATE OF REGISTRATION OF CHARGE ISSUED BY THE REGISTRAR OF COMPANIES (IF THE CORPORATE DEBTOR IS A COMPANY)	NA
4.	DETAILS OF RETENTION OF TITLE ARRANGEMENTS (IF ANY) IN RESPECT OF GOODS TO WHICH THE OPERATIONAL DEBT REFERS	NA
5.	RECORD OF DEFAULT WITH THE INFORMATION UTILITY (IF ANY)	NA
6.	PROVISION OF LAW, CONTRACT OR OTHER DOCUMENT UNDER WHICH DEBT HAS BECOME DUE	Sale of Goods Act 1930 and Indian Contract Act 1872
7.	LIST OF DOCUMENTS ATTACHED TO THIS APPLICATION IN ORDER TO PROVE THE EXISTENCE OF OPERATIONAL DEBT AND THE AMOUNT IN DEFAULT	Notice with which the invoice demanding payment is attached; Copies of invoices along with delivery challan duly received and acknowledged The working for computation of interest amount and dates of default.  The aforesaid documents need to be attached as annexures.

Here you need to ask the corporate debtor if he disputes the amount of the debt or if there is any dispute pending adjudication.  

3. If you dispute the existence or amount of unpaid operational debt (in default) please provide the undersigned, within ten days of the receipt of this letter, with the pendency of the suit or arbitration proceedings in relation to such dispute filed before the receipt of this letter/notice. 

To err is to be human. So, in case the debt has already been repaid by the debtor and the credit has missed out, you give an opportunity to reproduce a proof to this effect. 

4. If you believe that the debt has been repaid before the receipt of this letter, please demonstrate such repayment by sending to us, within ten days of receipt of this letter, the following: 

(a) an attested copy of the record of electronic transfer of the unpaid amount from the bank account of the corporate debtor; or 

(b) an attested copy of any record that Chini Cosmetics Pvt. Ltd. has received the payment. 

In case you have a certificate from information utility to the effect that there is no pending dispute, attached that as well. 

Now, what is an information utility? What does it do?  

Information Utility is an electronic database that collects, authenticates, stores, and provides access to financial information related to debtors, facilitating the insolvency resolution process and enabling stakeholders to make informed decisions. 

5. The undersigned, hereby, attaches a certificate from an information utility confirming that no record of a dispute raised in relation to the relevant operational debt has been filed by any person at any information utility, if available. 

Thereafter, for the greater good, you make a final request to repay the debt within 10 days from the receipt of this notice which could in turn avoid the need to approach the NCLT.

6. The undersigned requests you to unconditionally repay the unpaid operational debt (in default) in full within ten days from the receipt of this letter failing which we shall initiate a corporate insolvency resolution process in respect of [name of corporate debtor]. 

Yours sincerely, 

Signature of the person authorised to act on behalf of the operational creditor	Sd/-
Name in block letters	Vinita Mehra
Position with or in relation to the operational creditor	Chief Executive Officer
Address of person signing	Goregaon West, Mumbai- 400104

10 days have lapsed from the date of issuance of the demand notice. Let’s assume that Macrohard Pvt. Ltd. neither repaid the operational debt nor notified Chini Cosmetics Pvt. Ltd. of any dispute. As a matter of last resort, Chini Cosmetics Pvt. Ltd. had to approach the NCLT. 

How is the application drafted? What are the documents required with it? Let’s find out in the section below. 

How to draft an application under section 9 of IBC? 

Here is everything you need to know about drafting an application, taking from the rules prescribed for formatting to the draft itself. I have it covered all for you. 

Let us first know what the rules are when it comes to drafting. So, you draft must- 

• Be in English, or if in another Indian language, include an English translation.
• Be typed in double spacing on the standard petition paper
• Have specified margins: 4 cm (top), 5 cm (left), and 2.5 cm (right).
• Be duly paginated, indexed, and stitched in paper book form.

What is needed to be filed along with the application? Here are the necessary components of a paper-form book. 

1. Index
2. Memo of Parties 
3. Synopsis 
4. List of Dates and Events  
5. Application under section 9 of the IBC r/w Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 
6. Exhibits (List of documents and correspondence relied upon by the Applicant in support of his case).
7. Affidavit under section 9(3) (b) of IBC 
8. Vakalatnama

This application is more of a letter addressed to the NCLT. So it begins with a date, the address of the NCLT where you propose to file this application, and the name and address of the corporate debtor.  

13th March 2025

To,

The National Company Law Tribunal, Mumbai Bench,

MTNL Telecom Building,

Opp. G. D. Somani School, Somani Marg,

Cuffee Parade, Mumbai — 400005

From, 

Chini Cosmetics Pvt. Ltd., 

Office No. 23, Sharma Industrial Estate, 

Goregaon East, Mumbai- 400063 

In the matter of Macrohard Pvt. Ltd. 

Thereafter, you start by stating the subject of this application and a short opening statement. 

Subject: Application to initiate insolvency resolution process with respect to Kabir A, under the IBC. 

Madam/Sir, 

I, hereby submit this application to initiate a corporate insolvency resolution process in respect of Macrohard Pvt. Ltd. 

For the sake of clarity, the entire application is divided into 4 parts. 

1. The first part consists simply of the particulars of the applicant such as the name of the corporate debtor, the identification number of the corporate applicant, etc.   
2. The second part deals name of the corporate debtor, identification of the corporate debtor, authorised share capital, list of assets, etc. 
3. The third part seeks particulars of the interim resolution professional.
4. The fourth part must provide for particulars of the corporate debtor such as the amount of debt, the total amount due and the date of default. 
5. The fifth part seeks documents, evidence and records of default. 

Hope we now have an overview of the application form. 

So let’s begin with putting in all the necessary details. 

   PART-I

PARTICULARS OF THE APPLICANT
NAME OF OPERATIONAL CREDITOR	Chini Cosmetics Pvt. Ltd.
IDENTIFICATION OF OPERATIONAL CREDITOR	CIN: L01631MH2022PTC096843
ADDRESS AND CORRESPONDENCE OF THE OPERATIONAL CREDITOR	Office No. 23, Sharma Industrial Estate, Goregaon East, Mumbai- 400063

PART- II

PARTICULARS OF THE CORPORATE DEBTOR
NAME OF CORPORATE DEBTOR	Macrohard Pvt. Ltd.
IDENTIFICATION NUMBER OF CORPORATE DEBTOR	CIN: U23340MH897PTC402810
DATE OF INCORPORATION OF CORPORATE DEBTOR	09.06.2002
NOMINAL SHARE CAPITAL AND THE PAID-UP SHARE CAPITAL OF THE CORPORATE DEBTOR AND/OR DETAILS OF GUARANTEE CLAUSE AS PER MEMORANDUM OF ASSOCIATION (AS APPLICABLE)	Authorised Share CapitalRs. 3,00,00,000/- (Rupees three crore only)  Paid-up share capital Rs. 2,78,66,000/- (Rupees two crores seventy-eight lacs only)
ADDRESS OF THE REGISTERED OFFICE OF THE CORPORATE DEBTOR	301-306, Chamber Business Center, Airoli, Navi Mumbai- 400 122
NAME, ADDRESS AND AUTHORITY OF PERSON SUBMITTING APPLICATION ON BEHALF OF OPERATIONAL CREDITOR (ENCLOSE AUTHORISATION)	Mr. ABC 301-306, Chamber Business Center, Airoli, Navi Mumbai- 400 122
NAME AND ADDRESS OF PERSON RESIDENT IN INDIA AUTHORISED TO ACCEPT THE SERVICE OF PROCESS ON ITS BE	Mr. ABC 301-306, Chamber Business Center, Airoli, Navi Mumbai- 400 122
DETAILS OF THE CORPORATE DEBTOR AS PER THE NOTIFICATION UNDER SECTION 55 (2) OF THE IBC – (i) ASSETS AND INCOME (ii) CLASS OF CREDITORS OR AMOUNT OF DEBT (iii) CATEGORY OF CORPORATE PERSON (WHERE APPLICATION IS UNDER CHAPTER IV OF PART II OF THE IBC)]	N.A.

       PART-III

PARTICULARS OF THE INTERIM RESOLUTION PROFESSIONAL
NAME OF THE INTERIM RESOLUTION PROFESSIONAL AND ADDRESS	Mr T. Shankaran having his office address at Office No. 23, 3rd Floor, Tejal Premises, Malad west, Mumbai- 400063

     PART-IV

In this part, we must mention a crystallised amount of default and also give a brief introduction to the businesses carried out by both parties. Thereafter, state how goods were purchased by the corporate debtor and were delivered on time. It is pertinent to mention here that there were no complaints made against the goods supplied. You also need to vehemently mention and argue that the invoices were agreed to be cleared within 30 days from the date of their receipt, and that the Corporate Debtor neglected various emails and telephonic requests to make payment. 

PARTICULARS OF OPERATIONAL DEBT

TOTAL AMOUNT OF DEBT  THE DATE FROM WHICH DEBT FELL DUE

Rs. 1,00,00,000/- (Principal) +  Rs. 10,00,000/- (Interest) =  Rs. 1,10,00,000/- (Rupees one crore ten lakhs only) The Operational Creditor is involved in the business of manufacturing and distribution of cosmetics.  The corporate debtor is a registered company engaged in the business of software development and support. The Corporate Debtor needed over 30 lakh gift sets for its employees and clients worldwide to present them on the occasion of International Women’s Day and International Mens’ Day. This is when they approached the Operational Creditor and placed an order with them from 10th November 2024 to 3rd March 2025.  Pursuant to the said purchase orders, the Operational Creditor sold and supplied self-care/wellness gift sets to the Corporate Debtor. That the Corporate Debtor was satisfied with the goods sold by the Operational Creditor and raised various invoices upon the Corporate Debtor from 1st September November 2024 to 3rd March 2024.  That between the said period, the Operational Creditor supplied coal to the Corporate Debtor worth Rs. 1,00,00,000/- (Rupees one crore only). That till date the Corporate Debtor has not made any payment towards invoices raised.  The CEO of the Operational Creditor consistently followed up with the concerned person of the Corporate Debtor and made several reminders through various modes of communication regarding the balance payment of the outstanding dues. However, the concerned person avoided the Operational Creditor’s requests and reminders.  That the Corporate Debtor even after receiving the goods from the Operational Creditor has failed and neglected to make any payment towards the balance amount of the invoices raised. That till date, the Corporate Debtor has not raised any dispute with regard to the goods received from the Operational Creditor.  That despite repeated follow-ups, the Corporate Debtor has fallen into debt of Rs. 1,10,00,000/- (Rupees One crore ten lakhs only).  That it seems that the Corporate Debtor has no intention to pay the operational debt. Therefore, it is necessary to initiate the Corporate Insolvency Resolution Process against the Corporate Debtor.  03/03/2023 i.e. the last date of unpaid invoice raised by the Operational Creditor.

PART-V

PARTICULARS OF OPERATIONAL DEBT (Documents, evidence and records)
1.	PARTICULARS OF SECURITY HELD, IF ANY, THE DATE OF ITS CREATION, ITS ESTIMATED VALUE AS PER THE CREDITOR. ATTACH A COPY OF A CERTIFICATE OF REGISTRATION OF CHARGE ISSUED BY THE REGISTRAR OF COMPANIES (IF THE CORPORATE DEBTOR IS A COMPANY)  N.A.
	DETAILS OF RESERVATION / RETENTION OF TITLE ARRANGEMENTS (IF ANY) IN RESPECT OF GOODS TO WHICH THE OPERATIONAL DEBT REFERS N.A.
	PARTICULARS OF AN ORDER OF A COURT, TRIBUNAL OR ARBITRAL PANEL ADJUDICATING ON THE DEFAULT, IF ANY (ATTACH A COPY OF THE ORDER) N.A.
	RECORD OF DEFAULT WITH THE INFORMATION UTILITY, IF ANY (ATTACH A COPY OF SUCH RECORD)  N.A.
	DETAILS OF SUCCESSION CERTIFICATE, OR PROBATE OF A WILL, OR LETTER OF ADMINISTRATION, OR COURT DECREE (AS MAY BE APPLICABLE), UNDER THE INDIAN SUCCESSION ACT, 1925 (10 OF 1925) (ATTACH A COPY)  N.A.
	PROVISION OF LAW, CONTRACT OR OTHER DOCUMENT UNDER WHICH OPERATIONAL DEBT HAS BECOME DUE INDIAN CONTRACT ACT, 1872; ANDSALE OF GOODS ACT, 1930
	A STATEMENT OF BANK ACCOUNT WHERE DEPOSITS ARE MADE OR CREDITS RECEIVED NORMALLY BY THE OPERATIONAL CREDITOR IN RESPECT OF THE DEBT OF THE CORPORATE DEBTOR (ATTACH A COPY) COPY ATTACHED
	A LIST OF OTHER DOCUMENTS IS ATTACHED TO THIS APPLICATION IN ORDER TO PROVE THE EXISTENCE OF OPERATIONAL DEBT AND THE AMOUNT IN DEFAULT  1. Copy of Purchase Orders;  2. Copy of various invoices raised by the Operational Creditor upon the Corporate Debtor;  3. Copy of Ledger Account maintained by the Operational Creditor

I, Ms. Vinita Mehra, certify that, to the best of my knowledge, Mr. T. Shankaran, is fully qualified and permitted to act as an Insolvency Professional in accordance with the IBC and the associated rules and regulations. A copy of the written consent of the Interim Resolution Professional (IRP) in Form-2 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 is annexed and marked as an annexure to this application.

The Corporate Applicant has paid the requisite fee for this application through Bharatkosh on 13th March 2025.

Sd/-

Yours sincerely,

NAME AND SIGNATURE OF THE AUTHORISED SIGNATORY 

Signature of the person authorised to act on behalf of the Corporate Applicant	Sd/-
Name in block letters	Ms. Vinita Mehra

How to draft an affidavit under section 9 (3) (b)? 

The format of this affidavit is the same as you may have prepared before. But this being an affidavit under a specific provision, you need to be careful with the content and add precise and pertinent information only. Let us have a look at it now. 

Just as any other affidavit it begins with a cause title, names of the parties and title.  

BEFORE THE NATIONAL COMPANY LAW TRIBUNAL 

MUMBAI BENCH

COMPANY PETITION NO. 1234 OF 2024 

VERSUS 

 AFFIDAVIT UNDER U/S. 9 (3) (B)

In this affidavit, besides all the generic information, you need to categorically mention the date on which the default arose and that the petitioner has issued a demand notice as mandated but met with no response. 

I, Ms. Vinita Mehra, adult, age 28 years, the Chief Executive Officer of the Petitioner herein, having registered address at Sharma Industrial Estate, Goregaon East, Mumbai, do hereby state on solemn affirmation as follows: 

1. I say that the Petitioner has filed the petition to initiate a corporate insolvency resolution process against the Respondent since it is unable to pay the debt. 
2. I say that I am the Chief Executive Officer of the Petitioner. I say that I am conversant with the facts of the case, which I have gathered from the records and books of accounts of the Petitioner. 
3. I say that the default occurred on 3rd March 2024, i.e., the date of the last invoice. 
4. I say that the Corporate Debtor was served with the demand notice as mandated under the provisions of the IBC. I say that the Respondent did not respond to the said notice. 
5. I say that since the corporate debtor failed to respond to the demand notice dated ___, the Petitioner has filed the said present petition before the Hon’ble Tribunal. 
6. I say that the Corporate Debtor is aware of filing of the said petition before the Hon’ble Tribunal. 
7. I say that in the said circumstances, insolvency proceedings be initiated against the Corporate Debtor.   

Advocates for the Petitioner

Sd/-

Signature of the Deponent

What are the exhibits that you could annex? 

Do you know the key difference between section 7 and 9 applications?  

Proving a default and debt in the case of section 7 is relatively simple. So to say, there is sufficient material to establish with the help of the Bankers’ Book Evidence Act 1891. The said Act categorically stipulates that the certified copies of the entries made by the bank shall constitute prima facie evidence of the transactions.  

But when you come to the section 9 application, you do not just need to prove debt and default, but you also need to establish that there is no dispute pending between the parties and that debt is operational in nature. Establishing such critical points is what makes a section 9 application a highly contested one. 

Now, to substantiate your averments made in the application, you need to annex/exhibit the following documents: 

1. To confirm the legal status of the Corporate Debtor, its CIN, registered office address and other necessary details, you need to exhibit the master data of the corporate debtor. 
2. To demonstrate that goods were agreed to be supplied under specific terms and conditions, copies of purchase orders are exhibited. 
3. To show that goods were actually provided and that a specific amount is due and also trigger the due date for payment, you need to exhibit invoices raised by the operational creditor. 
4. To show a record of continuous transactions, credits and debts, you need to exhibit a ledger account maintained by an operational creditor. 
5. To provide a crystallised and itemised calculation of the total amount of default, working computation of outstanding amount. 
6. By now we know that a demand notice is a pre-requisite under the IBC, thus you need to exhibit that but more importantly, you also need to attach proof of delivery of the notice. 
7. As per the provisions of the IBC, the creditor needs to ensure that there is no pending or prior legal dispute, thus an affidavit of no dispute under section 9(3)(b) must be exhibited. 
8. Lastly, to summarise what is due to the creditor, it prepares the particulars of the claim.

How are the cases listed?

1. At first, the daily cause list is prepared and published.  
2. In the cause list, matters are listed in the following order of priority

• Pronouncement of orders
• Cases requiring clarification
• Admission cases
• Cases for orders or directions
• Part-heard cases (latest ones take precedence)
• Other cases in numerical order or as per Bench directions

What are the contents of a cause list?

• Case number, date, time, court hall, and names of presiding members (President, Judicial Member, and Technical Member)
• Names of legal practitioners and their party representation
• Names of unrepresented parties with their ranks
• Registry objections and special directions are in the remarks column. 

This is how a case is entered in a cause list- 

National Company Law Tribunal 

     Mumbai Bench       

         Court-1 

  Hearing through- Hybrid mode

Coram- SH. [Name of the member] (Judicial) and 

SH. [Name of the member]  (Technical)

Sr. No.	CP No.	IA/CA No.	Purpose	Sectio n	Name of the parties	Counsel for Petitioner	Counsel for Respondent	RP/Liquidator	Remarks
State the purpose for which the matter is listed (For instance: Pronouncement of Orders)
1.	CP NO. 65 of 2025	–	For order	Section 9	Chini Cosmetics Pvt. Ltd.

 In a cause list, the matters that are kept for the pronouncement of orders are to be placed first. Thereafter, a supplementary list which is mainly for admissions and then an ordinary list of matters which is for hearing. 

3. Carry forward and adjournment of cases

• The cause list for that day will be carried forward to the next working day unless directed otherwise. 
• The Registrar will adjourn the cases to a suitable date unless otherwise directed, and the new dates or directions will be posted on the Registry’s notice board.

4. For a listing of urgent matters

An urgent matter filed before noon shall be listed before the NCLT on the following working day if it is complete in all respects. in exceptional cases, it may be received after noon but before 3.00 P.M. for listing on the following day, with the specific permission of the Bench.  

What is the procedure for adjudication before NCLT? 

NCLT being an adjudicating authority, contesting an application here is pretty simple.  

• As soon as the application is filed by the operational creditor, the NCLT shall examine the application to scrutinise it on the following points- 

1. Whether it is complete in all respects that is it is as per the provisions  of the IBC and the rules prescribed thereunder;
2. Existence of debt and default;
3. Whether a demand notice is issued and delivered to the corporate debtor
4. Non-payment of unpaid operational debt;
5. Any pre-existing dispute; and 
6. If any proceedings are pending against the proposed IRP. 

• In case the application is- 

1. If the application fails to meet the above criteria, the NCLT grants 7 days to remedy the defect (in case of procedural defect) or reject the application depending upon the defect; 
2. If the application fulfils the prescribed conditions as given in the above point, the NCLT proceeds with hearing the application. 

• The Operational Creditor shall also ensure proper and effective service is made to the Corporate Debtor. 
• The Corporate Debtor has to remain present on the day of the first hearing and where a 2 week is granted to respond to the said application. 
• The corporate debtor may respond by evidencing that payment has already been made or establishing a prior dispute before the section 8 notice.

• Thereafter, an argument on behalf of both parties takes place. 
• The Applicant argues how there is an existence of debt and default by reproducing agreement, if any, pending invoices, follow-up emails, demand notice, etc.
• The Corporate Debtor argues on the following points- 

1.     There is a pre-existing dispute; 
2.     That payment of operational debt is made; 
3.     Application is time-barred and defective; 
4.     That the operational creditor is not disqualified as per section 11 of the IBC. 

If there is any amount which a corporate debtor is claiming from the operational creditor, it may also raise a valid set-off and counterclaim. 

•  Considering the pleadings, evidence and arguments-  

The NCLT will:

1. Admit the application, declare a moratorium, and appoint the IRP to begin the CIRP.
2. If not satisfied (due to dispute or improper filing), it may reject the application.

• Key timelines which the NCLT is expected to adhere to: 

1. NCLT is expected to admit or reject the application within 14 days of filing.
2. IRP must be completed within 180 days (extendable up to 330 days) from the date of admission of application. 

What are the orders that may be passed?  

In case, it is determined by the NCLT that there is a default and that there is no pending dispute between the parties, it shall pass the following orders. 

1. The Corporate Person, viz., Macrosoft Pvt. Ltd., is admitted in the Corporate Insolvency Resolution Process under section 9 of the IBC.
2. The moratorium under section 14 of the IBC is declared for prohibiting all of the following:  

1. the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; 
2. transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; 
3. any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property including any action under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002; 
4. the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the corporate debtor. 

3. The order of moratorium shall have effect from the date of this order till the completion of the Corporate Insolvency Resolution Process or until this Adjudicating Authority approves the Resolution Plan under sub-section (1) of section 31 or passes an order for liquidation of the Corporate Debtor Company under section 33 of the IBC, as the case may be.  
4. We hereby appoint Mr. S. Shanakaran, having Registration No.[insert registrational number] and [insert e-mail ID:] to act as an IRP under section 13(1)(c) of the IBC. He shall conduct the Corporation Insolvency Resolution Process as per the provision of the IBC read with Regulation made thereunder: 

1. The IRP shall perform all his functions as contemplated, interalia, by sections 17, 18, 20, & 21 of the IBC. It is further made clear that all personnel connected with the Corporate Debtor, its Promoter, or any other person associated with the management of the Corporate Debtor are under a legal obligation under section 19 of the IBC to extend every assistance and cooperation to the Interim Resolution Professional. Where any personnel of the Corporate Debtor, its Promoter, or any other person required to assist or co-operate with IRP do not assist or co-operate, IRP is at liberty to make an appropriate application to this Adjudicating Authority with a prayer for passing an appropriate order.  
2. This Adjudicating Authority directs the IRP to make a public announcement of the initiation of the Corporate Insolvency Resolution Process (CIRP) and call for the submission of claims as required by section 13(1) (b) of the IBC.  
3. The IRP shall be under a duty to protect and preserve the value of the property of the ‘Corporate Debtor Company’ and manage the operations of the Corporate Debtor Company as a going concern as a part of an obligation imposed by section 20 of the IBC. The Operational Creditor is directed to pay an advance of Rs.1,00,000/- (Rupees One Lakh Only) to the IRP within two weeks from the date of receipt of this order for the purpose of smooth conduct of the Corporate Insolvency Resolution Process (CIRP) and IRP to file proof of receipt of such amount to this Adjudicating Authority along with First Progress Report. Subsequently, IRP may raise further demands for Interim funds, which shall be provided as per the Rules. 
4. The Registry is directed to communicate a copy of this order to the Operational Creditor, Corporate Debtor to the Interim Resolution Professional and the concerned Registrar of Companies, after completion of necessary formalities, within seven working days and upload the same on the website immediately after pronouncement of the order. 

Final thoughts

Section 9 of the IBC empowers operational creditors with an effective remedy to recover the dues from the defaulting corporate debtors. However, the legislative intent is clear: the provision is not a tool for mere debt recovery but a mechanism for resolving genuine cases of insolvency.

Over the years, judicial interpretations, particularly on what constitutes a “pre-existing dispute” have refined the application of this section, ensuring a balance between creditor rights and protection against frivolous or premature insolvency claims.

Going forward, operational creditors must exercise due diligence, maintain robust documentation and approach this remedy with clarity and purpose. Equally, corporate debtors must ensure transparent communication and timely resolution of disputes to avoid the adverse consequences of CIRP.

In essence, section 9, when used responsibly, reinforces credit discipline and upholds the core objectives of the IBC—resolution over liquidation and value preservation over destruction.

FAQs 

1. What are the ingredients of an operational debt? 

• Debt arises out of the supply of goods or provision of services; 
• There is no pre-existing dispute regarding quality or delivery; 
• The payment was contractually due and remains unpaid. 

2. How long does NCLT take to decide on an application under section 9? 

The prescribed period is 14 days from the date of filing. However, in practice, it usually exceeds the said period. 

3. Can the operational creditor withdraw the application after filing it?
   Yes, it can be withdrawn with the approval of the NCLT. However, if the application is admitted, withdrawal requires approval of 90% of the Committee of Creditors [in case CoC is constituted]. 
   
4. What is the fee payable on the section 9 application? 

Rs. 2000/-. 

5. Can section 9 be used as a debt recovery tool?
   No. Courts have repeatedly emphasized that the IBC is mainly for insolvency resolution and is not a substitute for recovery proceedings.
   
6. What is the limitation period to apply under section 9?

Since IBC does not specify a limitation period, the Limitation Act 1963 shall be applicable which gives three years to file such an application from the date of cause of action arises that is after lapse of notice period of 10 days .

7. What leads to the rejection of the application? 

If the application does not meet the requirements of section 9 and the regulations made thereunder, such as issuing a demand notice before filing an application or it comes to the knowledge of the NCLT that a dispute is already pending between the parties, the application is likely to be rejected. 

8. Is this application required to be served on the IBBI? 

Yes, as per the regulations, the application needs to be served on the IBBI besides serving it on the corporate debtor. 

9. Can this application be filed online? 

Yes. The process of filing has now moved online. You may refer to the link here to understand the online e-filing process.