Section 7 insolvency admission confirmed where debt, default, limitation, and completeness were established despite parallel recovery proceedings.

A section 7 application under the Insolvency and Bankruptcy Code was held complete and maintainable because the financial creditor produced loan documents, account statements, CIBIL record, charge filings and a banker's books certificate evidencing disbursement of financial debt and default by the corporate debtor. The limitation objection was rejected as the record showed subsequent acknowledgments and transactions within the relevant period, so the application was treated as timely. Pending SARFAESI and other recovery proceedings did not bar initiation of insolvency proceedings, as the Code remedy operates independently and in rem. On these findings, the application was admitted, CIRP commenced, and the proposed 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 maintainable, whether financial debt and default were established within limitation, and whether the corporate insolvency resolution process should be initiated.

Analysis: The petitioning financial creditor produced the loan documents, account statements, CIBIL record, charge filings, and banker's books certificate to show disbursement of financial debt, continuing liability, and default by the corporate debtor. The objection based on limitation was rejected because the record showed subsequent acknowledgments and transactions within the relevant period, and the application was found to have been filed within time. The pendency of SARFAESI and other recovery proceedings was held not to bar initiation of proceedings under the Code, since the remedy under the Code is in rem and independent of such proceedings. The application was also found to be complete, with notice served and an interim resolution professional proposed and consented.

Conclusion: The requirements for admission under section 7 were satisfied and the petition was admitted, with commencement of the corporate insolvency resolution process and appointment of the interim resolution professional.

Ratio Decidendi: Once a financial creditor establishes a financial debt, default, and a complete application within limitation, prior or parallel recovery proceedings do not prevent admission of a section 7 application and initiation of CIRP.

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