Petition U/S 9 Of IBC Is Inadmissible Without Payment Received By Corporate Debtor In Subcontracted Work Done By Operational Creditor: NCLT Hyderabad

The NCLT (National Company Law Tribunal), Hyderabad, has ruled that a petition under Section 9 of the IBC is not admissible in the "absence of any payment received by the corporate debtor in subcontracted work." The tribunal found that since the operational creditor had not received any payment from the debtor, the petition for insolvency was not valid. This ruling provides clarity on the criteria for initiating insolvency proceedings and reinforces the principle that a valid debt is a prerequisite.