Section 7 insolvency admission turns on proof of financial debt, default, and limitation compliance with supporting records.

A complete section 7 application under the Insolvency and Bankruptcy Code is admitted where the financial creditor proves financial debt, default, and compliance with limitation, and the record is supported by loan documents, account statements, NPA classification, and the debtor's admission of liability. On that material, the Tribunal found the debt due and payable, default above the statutory threshold established, and the application within limitation. It also noted that the proposed Interim Resolution Professional had no disciplinary proceedings pending. The application was admitted, moratorium was declared, public announcement was directed, and an Interim Resolution Professional was appointed.

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Issues: Whether the financial creditor established the existence of financial debt and default so as to warrant admission of the application under section 7 of the Insolvency and Bankruptcy Code, 2016.

Analysis: The application was found to be complete in the prescribed form and supported by the sanction letter, account statements, CIBIL report, NPA classification, and the debtor's reply admitting the liability. On this material, the Tribunal held that a financial debt was due and payable, default exceeding the statutory threshold was proved, and the application was within limitation. The proposed Interim Resolution Professional had also confirmed the absence of disciplinary proceedings.

Conclusion: The section 7 application was admitted, moratorium was declared, public announcement was directed, and an Interim Resolution Professional was appointed.

Ratio Decidendi: Where a complete section 7 application by a financial creditor establishes financial debt and default, the Tribunal must admit the insolvency petition and initiate the corporate insolvency resolution process with the statutory moratorium and attendant directions.

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