Financial debt and default established on record justify admission of a Section 7 insolvency application and initiation of CIRP.

An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is admitted where financial debt and default are established on the record and remain unrebutted. The materials cited, including the loan agreement, mortgage deed and sanction letter, were treated as sufficient to show disbursal of financial assistance, and the claimed repayment default was not contested because the corporate debtor did not appear despite service. On that basis, the corporate insolvency resolution process was initiated, a moratorium was declared, and an interim resolution professional was appointed.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted on proof of debt and default.

Analysis: The petition was filed by a financial creditor seeking commencement of the corporate insolvency resolution process against the corporate debtor. The record included the loan agreement, mortgage deed, and sanction letter establishing disbursal of financial assistance. The default claimed in repayment remained uncontroverted, as the corporate debtor did not appear despite service and publication of notice. On the materials placed, the debt and default stood established.

Conclusion: The application was admitted and the corporate insolvency resolution process was initiated against the corporate debtor.

Final Conclusion: The corporate debtor was brought into insolvency proceedings, moratorium was declared, and an interim resolution professional was appointed to take forward the resolution process.

Ratio Decidendi: An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is to be admitted where the financial debt and default are established on the record and remain unrebutted.

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