Application u/s 9 of Insolvency and Bankruptcy Code not Maintainable in absence of Strict Proof of Debt and Default: NCLT

The Mumbai Bench of the National Company Law Tribunal (NCLT) ruled that an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, is not maintainable without valid proof of debt and default. Mittal Polymers, an Operational Creditor, alleged a default of Rs. 2.33 crore against Suvarna Additives Limited, based on unpaid invoices from 2015 to 2019. \r

The tribunal found that the Operational Creditor's evidence, including a bank statement and demand notice, was insufficient to establish the debt's validity. Consequently, the tribunal rejected the application, noting the absence of necessary invoices and proper documentation to support the claims.