Section 9 IBC Petition

 

⚖️ Section 9 IBC Petition

(Under the Insolvency and Bankruptcy Code, 2016 – for Operational Creditors)

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🧾 What is Section 9?

Section 9 allows an Operational Creditor to file an application before the NCLT to initiate the Corporate Insolvency Resolution Process (CIRP) against a Corporate Debtor when there is a default in repayment of an operational debt.

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📚 Relevant Laws & Rules

• Section 8 & 9, IBC, 2016

• Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016

• Filed in Form 5

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✅ Preconditions to File a Section 9 Petition

1. Debt must be "operational" (supply of goods/services, employment, statutory dues like PF, etc.)

2. Minimum default: ₹1 crore (as per 2020 notification)

3. Mandatory: Serve a demand notice (in Form 3 or Form 4) under Section 8(1)

4. Waiting period: Wait 10 days after the demand notice—only then can you file the petition

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📋 Checklist Before Filing

Requirement	Mandatory?
Demand Notice (Form 3/4)	✅ Yes
Affidavit of no dispute (Sec. 9(3)(b))	✅ Yes
Invoice/PO/Contract copy	✅ Yes
Bank statement or acknowledgment	✅ Yes
Board Resolution/Authorization (if company)	✅ Yes

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📑 Sample Format of Section 9 Petition (Form 5)

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🏛️ BEFORE THE HON’BLE NATIONAL COMPANY LAW TRIBUNAL

[Bench Name – e.g., Delhi Bench]

In the matter of:
Section 9 of the Insolvency and Bankruptcy Code, 2016
Read with Rule 6 of the IBBI Rules

In the matter of:
[Your Name]
...Operational Creditor

Versus

[Corporate Debtor Name]
...Corporate Debtor

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1. Particulars of Operational Creditor (Applicant)

• Full name

• Address

• Email, Contact

• PAN/CIN/Registration Number

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2. Particulars of Corporate Debtor

• Full name

• Registered address

• Corporate Identification Number (CIN)

• Email ID

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3. Details of Operational Debt

• Amount: ₹[exact amount]

• Date of default: [dd/mm/yyyy]

• Nature of operational debt: [e.g., unpaid invoices for goods supplied]

• Supporting documents: invoices, PO, email correspondence, etc.

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4. Date of Demand Notice

• Sent on: [dd/mm/yyyy]

• Form used: [Form 3 / Form 4]

• Mode of service: [Speed Post / Email / Hand delivery]

• Attach copy + proof of delivery

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5. Affidavit under Section 9(3)(b)

An affidavit affirming that no notice of dispute has been received from the corporate debtor prior to or after the demand notice.

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6. Relief Sought

“The Applicant prays that this Hon’ble Tribunal may be pleased to:

a) Admit the present application under Section 9 of IBC, 2016;
b) Initiate the Corporate Insolvency Resolution Process (CIRP);
c) Appoint an Interim Resolution Professional (IRP);
d) Grant such other reliefs as deemed fit in the interest of justice.”

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7. List of Attachments

• Form 5 (filled & signed)

• Copy of demand notice and proof of service (Form 3/4)

• Invoices / work orders / agreements

• Affidavit of no dispute

• Bank statements

• Form 2 (Consent of IRP) – optional

• Board resolution or authorization

• Court fee receipt (₹25,000)

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🧠 Practical Notes

• If the corporate debtor disputes the debt, the NCLT may reject the petition.

• Attach strong evidence of default (email admission, audit reports, or acknowledgments).

• File through NCLT e-portal + physical submission as per rules.