Section 7 insolvency admission turns on debt, default, and completeness; NPA status is not determinative.

For admission of a financial creditor's Section 7 application, the Adjudicating Authority must be satisfied on a summary basis that a financial debt is due and payable, default has occurred, and the application is otherwise complete. On the facts, the loan transaction and amendatory agreement showed disbursal, revised repayment terms, and persistent non-payment of instalments, while the objection that the account had not been declared non-performing was held immaterial. The application was found complete, supported by evidence of default, and the proposed resolution professional was eligible, so initiation of the corporate insolvency resolution process was justified.

---

---

Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and whether a default had occurred so as to warrant initiation of the Corporate Insolvency Resolution Process.

Analysis: The financial debt was disbursed under the loan transaction and the material on record showed persistent non-payment of the instalments. The amendatory agreement recorded a floating rate of interest and the debtor's liability under the revised repayment schedule. In a Section 7 proceeding, the Adjudicating Authority is required to ascertain the existence of debt and default on a summary basis. The objection regarding declaration of the account as non-performing asset was held to be immaterial for the purpose of Section 7. The application was found to be in the prescribed form, supported by evidence of default, and the proposed resolution professional was found eligible with no pending disciplinary proceedings.

Conclusion: The application was complete and default was established; admission under Section 7 was justified.

Final Conclusion: Corporate insolvency resolution proceedings were initiated, an interim resolution professional was appointed, and moratorium was declared.

Ratio Decidendi: For admission of a financial creditor's application under Section 7, the Adjudicating Authority need only be satisfied that a financial debt is due and payable, a default has occurred, and the application is otherwise complete; the status of the account as NPA is not determinative.

---