Chapter II - Corporate Insolvency Resolution Process
Section 9
Section 9: insolvency application by an operational creditor
Section 9 is the operational creditor's route to a corporate insolvency resolution process. It opens only after ten days from delivery of the Section 8 demand notice or invoice without payment or a notice of dispute. The tribunal must decide within fourteen days on listed conditions. Since 26 May 2026 it must record reasons in writing if it takes longer.
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This article is for general information. Refer to the Insolvency and Bankruptcy Code, 2016 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(1) After the expiry of the period of ten days from the date of delivery of the notice or invoice demanding payment under sub-section (1) of section 8, if the operational creditor does not receive payment from the corporate debtor or notice of the dispute under sub-section (2) of section 8, the operational creditor may file an application before the Adjudicating Authority for initiating a corporate insolvency resolution process.
(2) The application under sub-section (1) shall be filed in such form and manner and accompanied with such fee as may be prescribed.
(3) The operational creditor shall, along with the application furnish—
(a) a copy of the invoice demanding payment or demand notice delivered by the operational creditor to the corporate debtor;
(b) an affidavit to the effect that there is no notice given by the corporate debtor relating to a dispute of the unpaid operational debt;
(c) a copy of the certificate from the financial institutions maintaining accounts of the operational creditor confirming that there is no payment of an unpaid operational debt by the corporate debtor, if available;
(d) a copy of any record with information utility confirming that there is no payment of an unpaid operational debt by the corporate debtor, if available; and
(e) any other proof confirming that there is no payment of an unpaid operational debt by the corporate debtor or any other information, as may be specified.
(4) An operational creditor initiating a corporate insolvency resolution process under this section, may propose a resolution professional to act as an interim resolution professional.
(5) The Adjudicating Authority shall, within fourteen days of the receipt of the application under sub-section (2), by an order—
(i) admit the application and communicate such decision to the operational creditor and the corporate debtor if,—
(a) the application made under sub-section (2) is complete;
(b) there is no payment of the unpaid operational debt;
(c) the invoice or notice for payment to the corporate debtor has been delivered by the operational creditor;
(d) no notice of dispute has been received by the operational creditor or there is no record of dispute in the information utility; and
(e) there is no disciplinary proceeding pending against any resolution professional proposed under sub-section (4), if any;
(ii) reject the application and communicate such decision to the operational creditor and the corporate debtor, if—
(a) the application made under sub-section (2) is incomplete;
(b) there has been payment of the unpaid operational debt;
(c) the creditor has not delivered the invoice or notice for payment to the corporate debtor;
(d) notice of dispute has been received by the operational creditor or there is a record of dispute in the information utility; or
(e) any disciplinary proceeding is pending against any proposed resolution professional:
Provided that Adjudicating Authority, shall before rejecting an application under sub-clause (a) of clause (ii) give a notice to the applicant to rectify the defect in his application within seven days of the date of receipt of such notice from the Adjudicating Authority:
Provided further that if the Adjudicating Authority has not passed an order under this sub-section within a period of fourteen days from the date of receipt of application under sub-section (2), it shall record the reasons for such delay in writing.
(6) The corporate insolvency resolution process shall commence from the date of admission of the application under sub-section (5) of this section.
Introduction
Section 5 of the Insolvency and Bankruptcy Code (Amendment) Act, 2026 made two changes, in force from 26 May 2026 under S.O. 2625(E). In clause (3)(e), "such other information, as may be prescribed" became "any other information, as may be specified". The additional information is therefore specified by IBBI regulations rather than prescribed by Central Government rules. A second proviso to subsection (5) now requires written reasons when the order is not passed within fourteen days.
Unlike Section 7, Section 9 still lists a disciplinary proceeding against a proposed resolution professional as a ground in clauses (5)(i)(e) and (5)(ii)(e). The default must also meet the Section 4 threshold, and the Section 8 notice stage must be completed first.
Key takeaways
Section 8 comes first
The application can be filed only after ten days from delivery of the Section 8 notice or invoice, if neither payment nor a notice of dispute has been received.
Dispute is a rejection ground
The tribunal rejects the application if the operational creditor has received a notice of dispute or the information utility records a dispute.
Proposing an IRP is optional
Section 9(4) says an operational creditor may propose a resolution professional to act as interim resolution professional.
Reasons for delay
From 26 May 2026, an order passed after fourteen days from receipt of the application must be accompanied by written reasons for the delay. The Code does not provide for deemed admission.
Filing requirements
Rule 6 of the Application to Adjudicating Authority Rules, 2016 requires the application in Form 5, with the documents listed there and in the CIRP Regulations. Before filing, a copy must be served on the corporate debtor's registered office and on IBBI. Rule 5 governs the earlier demand notice (Form 3) or invoice with notice (Form 4) and how it is delivered.
Regulation 2B of the CIRP Regulations, substituted with effect from 2 June 2026, lists further information for Section 9 applications. It covers GSTR-1 and GSTR-3B extracts and e-way bills where applicable, part payments, any assignment or guarantee, and a statement of account. It also asks for a related-party statement and details of other recovery proceedings. Regulations 2C and 2D require PAN, email ID and a chronology of debt, default and limitation.
Admission and rejection conditions
Under subsection (5)(i), the tribunal admits the application if it is complete and the debt is unpaid. The invoice or notice must have been delivered, with no notice or information utility record of dispute. No disciplinary proceeding may be pending against a proposed resolution professional. Subsection (5)(ii) mirrors these as rejection grounds.
The seven-day rectification notice in the first proviso applies to rejection for an incomplete application under sub-clause (a) of clause (ii). Whether a dispute raised by the corporate debtor is a genuine pre-existing dispute is a matter for the tribunal on the facts.
Section 67C, inserted by section 48 of the 2026 Act and in force from 26 May 2026, adds a civil penalty. If an operational creditor conceals in a Section 9 application that the corporate debtor had notified it of a dispute, or of full and final payment, of the unpaid operational debt, the tribunal may impose a penalty of not less than one lakh rupees and up to two crore rupees. The penalty can also be imposed on any person who authorised, permitted or acted on the concealment. It is imposed on an application by IBBI, the Central Government or a person authorised by the Central Government.
Commencement
CIRP commences on the date of admission under subsection (6). The decision is communicated to both the operational creditor and the corporate debtor under subsection (5). Moratorium and public announcement follow under Sections 13 to 15.
Practical checklist
Do
- Keep proof of when the Section 8 notice or invoice was delivered, and count ten days from delivery.
- Check the information utility and your correspondence for any record of dispute before filing.
- Prepare the Regulation 2B information, including GST return extracts where applicable and a statement of account.
- Serve the application on the corporate debtor's registered office and on IBBI before filing.
Avoid
- Do not file before the ten-day period after delivery of the Section 8 notice has expired.
- Do not use Section 9 as a substitute for recovering a debt that is genuinely disputed.
- Do not leave out a notice of dispute or of full and final payment received from the corporate debtor; Section 67C provides a penalty for concealing it.
- Do not rely on a pre-2026 copy that refers to information "as may be prescribed" in clause (3)(e).
Glossary
- Operational creditor
- A person to whom an operational debt is owed, including a person to whom such debt has been legally assigned or transferred, as defined in Section 5(20).
- Specified
- Specified by regulations made by the Board (IBBI) under the Code (Section 3(32)); "prescribed" means prescribed by Central Government rules (Section 3(26)).
Frequently asked questions
When can an operational creditor file under Section 9?
After ten days from delivery of the Section 8 demand notice or invoice, if it has not received payment or a notice of dispute under Section 8(2).
Must an operational creditor propose an interim resolution professional?
No. Section 9(4) uses "may". If one is proposed, a pending disciplinary proceeding against that professional is a ground for rejection under Section 9(5)(ii)(e).
What changed in Section 9 in 2026?
Clause (3)(e) now refers to any other information "as may be specified", and a new proviso requires written reasons if the order is not passed within fourteen days. Both changes apply from 26 May 2026.
Need help applying this provision to your situation?
Contact BizeneedLast updated 11 October 2026