Section 7 maintainability in insolvency: restructuring objections and prior lender approval were not required before admission.

The section 7 application was found complete and maintainable because default was shown, the proposed Interim Resolution Professional had filed the required consent and eligibility disclosure, and notice had been duly served on the corporate debtor. The objection that a restructuring proposal had to be examined before insolvency admission was rejected: the RBI prudential circular did not require restructuring in every default case, the later circular could not control an already filed petition, and the revised proposal was not submitted within the permitted time. The Code also does not require prior approval of the consortium or Joint Lenders' Forum before a financial creditor files a section 7 application, whether alone or jointly, so the petition was admitted.

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Issues: Whether the section 7 application was complete and maintainable, and whether the objection based on the pending restructuring proposal and consortium approval could prevent admission of the insolvency petition.

Analysis: The application satisfied the statutory requirements for admission under the Insolvency and Bankruptcy Code, 2016. Default was shown, the application was complete, the proposed Interim Resolution Professional had furnished the necessary consent and eligibility disclosure, and notice to the corporate debtor had been duly served. The objection that a restructuring proposal had to be considered first was rejected because the RBI prudential circular relied upon did not mandate restructuring in every default case, and the later circular could not govern a petition already filed. The record also showed that the revised restructuring proposal was not submitted within the time allowed and that the Code does not require prior approval of the consortium or Joint Lenders' Forum for filing a section 7 application by a financial creditor, whether alone or jointly.

Conclusion: The objection to maintainability failed and the petition was held admissible.

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