NCLT, Ahmedabad Held That The Essential Requirement Under Section 9 Of IBC Is The Existence Of Unpaid Operational Debt As On The Date Of Consideration Of The Application.

The National Company Law Tribunal, Ahmedabad Bench I ("NCLT") through its judgement dated 05.01.2026 in Dhyaneshwar Shankar Unde v. Shukla Dairy Private Limited¹ held that the essential requirement under Section 9 of the Insolvency and Bankruptcy Code, 2016 ("IBC") is the existence of unpaid operational debt as on the date of consideration of the application under Section 9 of IBC. It held that proceedings under Section 9 of the IBC are summary in nature and the NCLT is required to confine itself to examining whether an operational debt exists and whether a default subsists on the date of consideration of the application.

Footnote

1. CP(IB) 239 of 2020.

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