CHAPTER II - CORPORATE INSOLVENCY RESOLUTION PROCESS
Section 9 of the Insolvency and Bankruptcy Code 2016: CIRP Application by Operational Creditor
Section 9 governs an application by an operational creditor to initiate the corporate insolvency resolution process after compliance with the demand-notice procedure under Section 8. It sets out the waiting period, prescribed application, supporting evidence, optional proposal of an interim resolution professional, and the grounds for admission or rejection by the Adjudicating Authority.
After ten days from delivery of the notice or invoice demanding payment under Section 8(1), if the operational creditor has not received payment from the corporate debtor or notice of a dispute under Section 8(2), the operational creditor may apply to the Adjudicating Authority to initiate CIRP.
Conditions Before Filing a Section 9 Application
The general minimum amount of default for Part II remains Rs 1 crore under the Central Government notification issued under Section 4.
Application, Form and Supporting Documents
The Section 9 application is made in the prescribed form and manner with the prescribed fee. Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 prescribes Form 5 for an operational creditor's application.
Section 9(3), as amended, requires the operational creditor to furnish the following with the application:
| Clause | Document or evidence |
|---|---|
| Section 9(3)(a) | A copy of the invoice demanding payment or demand notice delivered to the corporate debtor. |
| Section 9(3)(b) | An affidavit that no notice relating to a dispute of the unpaid operational debt has been given by the corporate debtor. |
| Section 9(3)(c) | A certificate from the financial institution maintaining the operational creditor's accounts confirming non-payment by the corporate debtor, if available. |
| Section 9(3)(d) | A record with an information utility confirming non-payment of the unpaid operational debt, if available. |
| Section 9(3)(e) | Other proof confirming non-payment of the unpaid operational debt or such other information as may be prescribed. |
The 2018 amendment made the financial-institution certificate subject to availability and expressly added information-utility records and other proof of non-payment. The Supreme Court has also held that the financial-institution certificate is not an indispensable condition precedent where the debt and default can otherwise be established.
Proposed Interim Resolution Professional
Under Section 9(4), an operational creditor may propose a resolution professional to act as the interim resolution professional. Unlike the filing requirement applicable to a financial creditor under Section 7, proposing an interim resolution professional is optional for an operational creditor under Section 9.
Admission or Rejection by the NCLT
The National Company Law Tribunal is the Adjudicating Authority for corporate persons. Section 9(5) requires it, within fourteen days of receipt of the application, to admit or reject the application by order on the statutory conditions.
| Application may be admitted where | Application is rejected where |
|---|---|
| The application is complete; there is no payment of the unpaid operational debt; the invoice or demand notice was delivered; no notice of dispute has been received and there is no record of dispute in the information utility; and no disciplinary proceeding is pending against a proposed resolution professional, if one is proposed. | The application is incomplete; payment has been made; the required invoice or notice was not delivered; a notice or record of dispute exists; or a disciplinary proceeding is pending against a proposed resolution professional. |
Before rejecting an application for incompleteness under Section 9(5)(ii)(a), the Adjudicating Authority must give the applicant notice to rectify the defect within seven days from receipt of that notice.
Under Section 9(6), CIRP commences from the date on which the application is admitted.
Pre-Existing Dispute Is a Key Section 9 Test
An operational creditor's insolvency application is not a substitute for deciding a genuine commercial dispute. If a real dispute existed before receipt of the Section 8 demand notice, the Section 9 application is liable to rejection. The Supreme Court in Mobilox Innovations Private Limited v. Kirusa Software Private Limited explained that the Adjudicating Authority examines whether there is a plausible contention requiring investigation and whether the dispute is not a patently feeble legal argument or an assertion unsupported by evidence.
The dispute inquiry therefore focuses on whether a genuine dispute existed before the statutory demand notice rather than finally adjudicating the merits of that dispute within the summary insolvency process.
Definitions Relevant to Section 9
| Provision | Term | Meaning |
|---|---|---|
| Section 3(12) | Default | Non-payment of debt when the whole or any part or instalment has become due and payable and is not paid. |
| Section 5(6) | Dispute | Includes specified disputes relating to the existence of debt, quality of goods or service, or breach of a representation or warranty. |
| Section 5(20) | Operational creditor | A person to whom an operational debt is owed, including a person to whom such debt has been legally assigned or transferred. |
| Section 5(21) | Operational debt | A claim in respect of provision of goods or services including employment, or specified statutory dues payable to the Central Government, State Government or a local authority. |
| Section 5(12) | Insolvency commencement date | The date of admission of an application for initiating CIRP by the Adjudicating Authority under the applicable provision. |
See Section 5 definitions and Section 6 - persons who may initiate CIRP.
Current Legal Position
As of 30 September 2026, the core Section 9 route continues to operate through the Section 8 demand notice, the ten-day statutory period, a prescribed application supported by evidence of non-payment, and the statutory admission or rejection tests. Current IBBI and NCLT materials continue to apply these requirements to operational-creditor petitions.
Official Legal Resources
For the current consolidated Code, rules and regulations, refer to the India Code portal, IBBI Legal Framework, IBBI Notifications and IBBI Regulations.