The NCLT has admitted an insolvency plea under Section 9, affirming unpaid transport invoices as operational debt despite prior settlement default. Shri S. Kangayan has been appointed as Interim Resolution Professional.
NCLT Admits Insolvency Plea under Section 9
The National Company Law Tribunal (NCLT) has admitted an insolvency plea under Section 9 of the Insolvency and Bankruptcy Code (IBC), ruling that unpaid transport invoices are classified as operational debt. This determination arises despite the existence of a default pertaining to settlement obligations.
In this case, the tribunal appointed Shri S. Kangayan as the Interim Resolution Professional (IRP) to oversee proceedings. The NCLT also imposed a moratorium under Section 14 of the IBC, prohibiting the continuation of any legal action against the debtor during the insolvency resolution process.
Key provisions cited in this decision include Section 5(21) of the IBC, which defines operational debt to include any claim in respect of the supply of goods or services. The ruling emphasizes the tribunal’s stance on the classification of debts, maintaining protections for creditors in the event of defaults.
This ruling is significant for practitioners as it illustrates the NCLT's interpretation of operational debt and reinforces the importance of maintaining clear payment records and adhering to statutory obligations to avoid insolvency claims.
Citations
- In re: Transport Invoices (2026) NCLT
