Section 7 insolvency admission turns on proven default and complete filings, not parallel recovery proceedings or secured assets.

At the admission stage of a Section 7 insolvency application, the adjudicating authority need only verify default and the completeness of the application, and may rely on certified account statements and supporting loan documents as prima facie evidence of debt. Pendency of parallel recovery proceedings before the DRT, the existence of secured assets, or a dispute over the exact quantum due does not bar initiation of the Corporate Insolvency Resolution Process where the debt is due and payable. On that basis, the application was admitted, the CIRP was triggered, moratorium followed, and an Interim Resolution Professional was appointed.

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Issues: Whether the financial creditor established default and satisfied the requirements for admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016; whether pendency of proceedings before the Debt Recovery Tribunal or the existence of secured assets barred admission; and whether the Corporate Insolvency Resolution Process and moratorium were liable to be initiated.

Analysis: The application was supported by loan documents, account statements certified under the Bankers' Books Evidence Act, and material showing sanction, disbursement, execution of agreements, and creation of security. The Tribunal treated the certified account statements as prima facie evidence of the debt and held that the Code requires only a summary determination of default at the admission stage, not adjudication of the exact quantum due. It further held that pendency of recovery proceedings before the DRT did not bar recourse under the Code because the insolvency framework operates independently and the Tribunal is not concerned with the existence of a dispute so long as debt is due and payable. The presence of secured assets was held to be irrelevant to admission. The Tribunal also found that the application was complete and that no disciplinary proceeding was pending against the proposed Interim Resolution Professional.

Conclusion: The requirements for admission under Section 7 were satisfied and default was established; the application was admitted, the Corporate Insolvency Resolution Process was triggered, and the Interim Resolution Professional was appointed.

Final Conclusion: The petition succeeded, insolvency proceedings were commenced against the corporate debtor, and moratorium and related statutory directions followed as a consequence.

Ratio Decidendi: At the admission stage of a Section 7 insolvency application, the adjudicating authority need only ascertain the occurrence of default and completeness of the application, and pendency of parallel recovery proceedings or disputes over the exact amount due does not bar initiation of the Corporate Insolvency Resolution Process.

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