Section 9 Application Valid Despite Decree Holder Not Being an Operational Creditor: NCLAT

Venus Buildtech India Pvt. Ltd. Vs Senbo Engineering Ltd. (NCLAT Delhi) The National Company Law Appellate Tribunal (NCLAT) in Delhi has set aside an order that rejected an application under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The application was filed by Venus Buildtech India Pvt. Ltd., an operational creditor, against Senbo Engineering Ltd. The Adjudicating Authority had dismissed Venus Buildtech’s application solely on the ground that, having obtained a decree from a civil court for the outstanding operational debt, it could no longer be considered an operatio...