Section 7 insolvency application admitted on proof of default, with moratorium ordered and interim resolution professional appointed.

An application under section 7 of the Insolvency and Bankruptcy Code was found complete where the financial creditor produced sanction documents, security documents, account statements, SARFAESI notice and the bankers' books certificate evidencing disbursement and default. The corporate debtor did not dispute liability or default, and pending proceedings before the Debts Recovery Tribunal did not bar commencement of the corporate insolvency resolution process. The proposed interim resolution professional was found eligible with no disciplinary proceeding pending. The application was admitted, moratorium was ordered, and the interim resolution professional was appointed.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and liable to be admitted on proof of default, and whether moratorium and appointment of interim resolution professional should follow.

Analysis: The financial creditor produced the sanction documents, security documents, statement of account, notice under the SARFAESI Act, 2002, and the certificate under the Bankers' Books Evidence Act, 1891, showing disbursement of facilities and default by the corporate debtor. The corporate debtor did not dispute liability or default and the pendency of proceedings before the Debts Recovery Tribunal did not bar initiation of corporate insolvency resolution process. The proposed interim resolution professional was found eligible and there was no disciplinary proceeding pending against him.

Conclusion: The application under section 7 was complete and was admitted. Moratorium was ordered and the interim resolution professional was appointed.

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