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Corporate Restructuring, Valuation and Insolvency · Application for Corporate Insolvency Resolution Process

Resolution Professional Proposal and Admission or Rejection of a Section 9 Application

Updated 11 October 2026 · Fact-checked

Under section 9(5) of the IBC, the Adjudicating Authority must admit or reject an operational creditor's application within fourteen days of receiving it. It admits if the application is complete, the debt is unpaid, notice was delivered, no dispute exists and no disciplinary proceeding is pending against the proposed IRP. Otherwise it rejects.

Understand Resolution Professional Proposal and Admission or Rejection

An operational creditor starts the corporate insolvency resolution process (CIRP) by filing an application under section 9. This is possible only after the demand notice or invoice under section 8 has been delivered and ten days have passed without payment or a notice of dispute.

The application can also carry a proposal for an interim resolution professional (IRP). Under section 9(4), the operational creditor may name a resolution professional to act as IRP. This is optional. The creditor may make no proposal at all.

The Adjudicating Authority (NCLT) must decide within fourteen days of receiving the application. Section 9(5)(i) lists five conditions for admission: the application is complete; the operational debt is unpaid; the invoice or notice was delivered; no notice of dispute was received and no dispute is recorded in the information utility; and no disciplinary proceeding is pending against the proposed resolution professional. Section 9(5)(ii) lists the mirror-image grounds for rejection.

There is a safeguard. Before rejecting for incompleteness, the Adjudicating Authority must give the applicant a notice to rectify the defect within seven days of receiving that notice. Only if the defect remains can it reject on that ground. The proviso applies to the incompleteness ground only.

CIRP commences from the date of admission (section 9(6)). On the insolvency commencement date the Adjudicating Authority appoints the IRP under section 16. If the creditor proposed a professional with no pending disciplinary proceedings, that person is appointed. If no proposal was made, the Adjudicating Authority refers to the Board (IBBI), which must recommend a name within ten days of the reference.

Key rules to remember

Time to decide
Admit or reject within 14 days of receipt of the application (s. 9(5))
Time runs from receipt of the application, not from the demand notice.
Grounds for admission (s. 9(5)(i))
Complete application + debt unpaid + invoice/notice delivered + no dispute notice or IU dispute record + no pending disciplinary proceeding against proposed RP
All five must be met.
Grounds for rejection (s. 9(5)(ii))
Incomplete application OR debt paid OR invoice/notice not delivered OR dispute notice/IU record of dispute OR disciplinary proceeding pending against proposed RP
Any one ground is enough.
Defect notice (proviso)
Before rejecting for incompleteness: notice to rectify within 7 days of receipt of that notice
Applies only to the incompleteness ground.
IRP proposal (s. 9(4), s. 16(3))
Proposed RP is appointed as IRP if no disciplinary proceedings are pending; if no proposal, reference to IBBI, which recommends within 10 days
The IRP is appointed on the insolvency commencement date (s. 16(1)).
Commencement (s. 9(6))
CIRP commences from the date of admission
Moratorium and other consequences follow from this date.

How to solve Resolution Professional Proposal and Admission or Rejection questions

Use this sequence for any case-based question on admission or rejection of a section 9 application.

  1. 1Check the pre-conditions: was a demand notice or invoice delivered under section 8, and did ten days pass without payment or a notice of dispute?
  2. 2Note the date the application was received and compute the fourteen-day window under section 9(5).
  3. 3Test each admission condition in section 9(5)(i): completeness, non-payment, delivery, no dispute, no disciplinary proceeding against the proposed RP.
  4. 4Identify any rejection ground that applies under section 9(5)(ii) and quote it.
  5. 5If the only defect is incompleteness, state that the Adjudicating Authority must first give notice to rectify within seven days.
  6. 6Deal with the IRP: proposed professional (section 9(4)) or reference to the Board (section 16(3)), including the ten-day recommendation period.
  7. 7Conclude: admit or reject, and state that CIRP commences on the date of admission if admitted.

Quickest way: Five-check admission test

When to use it: When time is short and the facts list several details about the application.

  1. Write the five admission conditions as a checklist: complete, unpaid, delivered, undisputed, RP clean.
  2. Tick or cross each against the facts.
  3. Any cross means rejection. If the cross is on completeness, add the seven-day rectification notice.
  4. Add one line on the IRP: proposed and clean means appointed; no proposal means reference to IBBI.
  5. End with the commencement date rule.

Common mistakes in Resolution Professional Proposal and Admission or Rejection

  • Saying the Adjudicating Authority can reject immediately for any defect.

    Students forget the proviso to section 9(5).

    Fix: State that notice to rectify within seven days is mandatory before rejecting for an incomplete application.

  • Applying the seven-day notice to every rejection ground.

    Over-generalising the proviso.

    Fix: The proviso covers only clause (ii)(a). Payment, dispute, non-delivery and pending disciplinary proceedings do not get a rectification notice.

  • Treating the IRP proposal as compulsory.

    Confusion with the proposal that sections 7 and 10 require.

    Fix: Section 9(4) says the creditor 'may' propose. If none is made, the Adjudicating Authority refers to the Board.

  • Counting the fourteen days from the demand notice or the end of the ten-day period.

    Mixing section 8 and section 9 timelines.

    Fix: The fourteen days run from receipt of the application by the Adjudicating Authority.

  • Forgetting that a pending disciplinary proceeding against the proposed RP is a ground for rejection.

    Students focus only on debt and dispute.

    Fix: Include clause (e) of both lists in your answer.

  • Stating that CIRP starts on filing.

    Confusing filing with admission.

    Fix: Section 9(6): CIRP commences from the date of admission.

Worked examples

Example 1

Sharma Components Ltd, an operational creditor, delivered a demand notice to Bharat Auto Ltd for ₹48,00,000. Ten days passed with no payment or dispute notice. Sharma filed a section 9 application proposing CA Meera Iyer, an insolvency professional against whom no disciplinary proceeding is pending. The application is complete. Advise on the decision and the IRP.

Show the solution
  1. Pre-condition: demand notice delivered and ten days expired without payment or dispute, so Sharma may file under section 9(1).
  2. The Adjudicating Authority must decide within fourteen days of receiving the application (section 9(5)).
  3. Check section 9(5)(i): application complete; debt unpaid; notice delivered; no dispute; no disciplinary proceeding against the proposed RP. All are met.
  4. No ground for rejection under section 9(5)(ii) applies.
  5. Under section 16(3)(b), the proposed professional is appointed as IRP since no disciplinary proceedings are pending.
  6. CIRP commences from the date of admission (section 9(6)).

Answer: The Adjudicating Authority should admit the application within fourteen days, appoint CA Meera Iyer as IRP, and CIRP commences from the date of admission.

Example 2

Kaveri Traders filed a section 9 application against Deccan Plastics Ltd but omitted the affidavit that no dispute notice was received. It also made no IRP proposal. The Adjudicating Authority is considering the application. Explain the procedure and how the IRP will be chosen.

Show the solution
  1. The affidavit is required by section 9(3)(b), so the application is incomplete. Incompleteness is a ground for rejection under section 9(5)(ii)(a).
  2. Before rejecting, the Adjudicating Authority must give notice to Kaveri to rectify the defect within seven days of receiving that notice.
  3. If Kaveri files the affidavit in time and the other conditions are met, the application can be admitted within the section 9(5) framework. If not, it may be rejected for incompleteness.
  4. On the IRP: no proposal was made under section 9(4), so under section 16(3)(a) the Adjudicating Authority refers to the Board for a recommendation.
  5. The Board must recommend an insolvency professional with no pending disciplinary proceedings within ten days of the reference (section 16(4)).
  6. The IRP is appointed on the insolvency commencement date (section 16(1)).

Answer: The Adjudicating Authority must first issue a seven-day rectification notice. If the defect is cured, it can admit; otherwise it may reject. The IRP will be the professional recommended by the Board within ten days of the reference.

Exam tips

  • Quote section 9(5)(i) and (ii) clause by clause. Examiners reward a visible checklist.
  • Always mention the proviso on the seven-day rectification notice when the facts show a missing document.
  • Read the facts for hidden grounds: a dispute notice, part payment, or a pending disciplinary proceeding against the proposed RP.
  • Keep timelines distinct: ten days (section 8 and section 9(1)), fourteen days (decision), seven days (rectification), ten days (Board recommendation).
  • Finish with a clear conclusion and the commencement date rule.

Practice questions from Application for Corporate Insolvency Resolution Process

Resolution Professional Proposal and Admission or Rejection: frequently asked questions

How many days does the NCLT have to admit or reject a section 9 application?

Fourteen days from receipt of the application, under section 9(5) of the IBC. The order must be communicated to both the operational creditor and the corporate debtor.

What are the grounds for rejecting a section 9 application?

Rejection is available if the application is incomplete, the debt has been paid, the invoice or notice was not delivered, a dispute notice was received or recorded in the information utility, or a disciplinary proceeding is pending against the proposed resolution professional.

Must the operational creditor propose an IRP?

No. Section 9(4) says the creditor may propose one. If none is proposed, the Adjudicating Authority refers the matter to the Board, which recommends a professional within ten days.

Can the application be rejected without giving a chance to correct it?

Not for incompleteness. The Adjudicating Authority must first give notice to rectify the defect within seven days. For other grounds, the Code gives no such notice requirement.