Case Note & Summary
The appeal arose from an order dated 11.09.2025 by the National Company Law Tribunal (NCLT) admitting a Section 9 application filed by the respondent against the corporate debtor. The appellant, an erstwhile director of the corporate debtor, contested the admission on the grounds that the invoices did not reflect actual supply of goods due to incorrect addresses and lack of written agreements. The appellant claimed that the invoices, dated between 05.08.2021 and 31.08.2021, were invalid as they did not carry the correct PIN code, leading to a presumption of no supply and thus no debt. The respondent had raised eight invoices totaling Rs. 1,42,46,178, with interest claimed at 12% per annum. The NCLT had determined the date of default as 20.08.2021, and the Section 9 application was filed on 20.07.2023. The appellant argued that without a formal agreement or acknowledgment of supply, there could be no debt. However, the court found that the appellant had not raised any queries regarding non-supply and that TDS deductions and input tax credits claimed by the corporate debtor indicated that goods were indeed supplied. The court concluded that the discrepancies in the address did not undermine the validity of the invoices or the existence of debt. Ultimately, the appeal was dismissed, affirming the NCLT's order and closing all pending interlocutory applications.
Headnote
A) Insolvency Law - Admission of Section 9 Application - Justification of Debt - Insolvency and Bankruptcy Code, 2016, Section 9 - The court upheld the admission of the Section 9 application, finding that the invoices presented indicated supply of goods, and the appellant's claims of non-supply were not substantiated. The court noted that the minor discrepancy in the PIN code did not negate the existence of debt and default (Paras 1-12).
Issue of Consideration
Whether the admission of the Section 9 application was justified despite the appellant's claims of non-supply of goods.
Final Decision
The appeal was dismissed, affirming the NCLT's order admitting the Section 9 application. The court found that the invoices indicated supply of goods and that the discrepancies in the address did not negate the existence of debt and default.
Law Points
- Admission of application
- Section 9
- Corporate Debtor
- invoices
- supply of goods
- debt and default
- threshold limit
- input tax credit
