Insolvency and Bankruptcy Code, 2016 | Section 9

Section 9 IBC: Application for Corporate Insolvency Resolution by Operational Creditor

Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) sets out how an operational creditor may apply to the National Company Law Tribunal (NCLT) to initiate the corporate insolvency resolution process (CIRP) after serving a demand notice under Section 8.

Updated: 21 October 2026. Always check the latest notified statutory text and applicable rules before filing.

Key requirements: A qualifying operational debt and default, a Section 8 demand notice, expiry of 10 days without payment or notice of a genuine pre-existing dispute, and an application satisfying Section 9 and Rule 6 requirements. The generally applicable CIRP default threshold is Rs. 1 crore under Section 4, subject to the law applicable to the case.

Who is an operational creditor?

Under Section 5(20), an operational creditor is a person to whom an operational debt is owed, including a person to whom that debt has been legally assigned or transferred. Section 5(21) defines operational debt as a claim in respect of the provision of goods or services, including employment, or a debt arising under law and payable to the Central Government, a State Government or a local authority. Section 3(12) defines default as non-payment of a debt when the whole or any part or instalment has become due and payable and is not paid.

The adjudicating authority for corporate persons is the NCLT under Section 60. The Section 4 minimum default threshold, limitation rules, and the nature of the debt must also be examined before filing.

How to file a Section 9 application

Serve the demand: Deliver a demand notice or invoice demanding payment under Section 8 and Rule 5, ordinarily using Form 3 or Form 4 as applicable.
Wait 10 days: The corporate debtor may show payment or notify an existing dispute under Section 8(2).
Prepare Form 5: Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016 prescribes the operational creditor's application, supporting documents, fee and service requirements.
File before the NCLT: Present the complete application with evidence of debt, default, notice delivery and absence of a qualifying dispute.
Await adjudication: The NCLT examines the statutory admission and rejection conditions under Section 9(5).

Section 9 of the IBC: Subsection-by-subsection explanation

Section 9(1): Right to apply after 10 days

After 10 days from delivery of the Section 8 notice or invoice, the operational creditor may apply for CIRP if it has not received payment or a notice of dispute as described in Section 8(2). The existence of a genuine pre-existing dispute can defeat admission even where no reply was sent within the 10-day period.

Section 9(2): Prescribed form, manner and fee

The application must be made in the prescribed manner, generally Form 5 under Rule 6, together with the prescribed filing fee and supporting records. Follow the current NCLT filing and service directions.

Section 9(3): Documents and evidence

The application must furnish the statutory material, including:

Clause (a): Copy of the demand notice or invoice delivered to the corporate debtor.
Clause (b): Affidavit concerning the absence of notice of dispute from the corporate debtor.
Clause (c): Certificate from the financial institution maintaining the operational creditor's account confirming non-payment, if available.
Clause (d): Information utility record confirming non-payment, if available.
Clause (e): Any other proof confirming non-payment or other prescribed information.

The words if available and the additional evidentiary clauses reflect amendments to the original text. A bank certificate is not invariably mandatory; see the Supreme Court's decision in Macquarie Bank Ltd. v. Shilpi Cable Technologies Ltd.

Section 9(4): Interim resolution professional

An operational creditor may propose an insolvency professional to act as interim resolution professional (IRP); unlike the usual financial creditor application, nomination is optional for a Section 9 applicant.

Section 9(5): Admission or rejection

The NCLT is directed to decide within 14 days of receipt of the application. Under clause (i), admission requires a complete application, unpaid debt, delivery of the notice or invoice, absence of notice or record of dispute, and no pending disciplinary proceeding against a proposed IRP. Under clause (ii), the NCLT rejects where the corresponding statutory grounds exist, including repayment, lack of notice, a dispute or incomplete filing. Before rejection solely for incompleteness, the applicant must receive an opportunity to rectify defects within seven days of receiving notice.

Section 9(6): Commencement of CIRP

The insolvency commencement date is the date of admission of the application under Section 9(5), not the date of demand notice or filing. Consequences of admission are governed by related provisions, including Sections 13, 14 and 16.

What counts as a pre-existing dispute?

Under Section 5(6), a dispute includes issues relating to the existence or amount of debt, quality of goods or services, or breach of representation or warranty. In Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd., the Supreme Court explained that the adjudicating authority must examine whether a real dispute existed before receipt of the demand notice; a plausible contention requiring investigation is materially different from a spurious or illusory defence. The IBC is a collective insolvency framework, not a substitute for ordinary debt collection in genuinely disputed claims.

Practical filing checklist

Requirement	Relevant provision
Operational debt and qualifying default	Sections 3(12), 4, 5(20), 5(21)
Demand notice or invoice	Section 8; Rule 5
Ten-day waiting period	Sections 8(2), 9(1)
Form 5 application and fee	Section 9(2); Rule 6
Supporting affidavit and evidence	Section 9(3)
Optional IRP proposal	Section 9(4)
Admission or rejection; cure of defects	Section 9(5)
Insolvency commencement	Section 9(6)

Related provision: Section 10 - Application by corporate applicant

The original webpage also addressed Section 10. This is a separate route for a corporate applicant to initiate CIRP when the corporate debtor has committed a qualifying default. It is not part of Section 9.

Section 10(1): An eligible corporate applicant may apply to the adjudicating authority, subject to the Code's restrictions, including Section 11 and the requirements applicable to corporate applicants.
Section 10(2): Application must comply with the prescribed form, manner, particulars and fee (generally Form 6 under Rule 7).
Section 10(3): Requires prescribed books, records and other information, including details of the proposed interim resolution professional and applicable corporate authorisation requirements.
Section 10(4): Provides for admission of a complete application or rejection of an incomplete application, with seven days to cure notified defects before rejection.
Section 10(5): CIRP commences upon admission.

Section 10A separately bars CIRP applications for defaults arising during the statutorily specified COVID-19 suspension period; its precise scope should be checked against the facts.

Official legal references and further reading

This article provides general legal information and is not a substitute for advice on a particular filing. Consult the current notified Code, rules, tribunal practice directions and binding decisions.