Section 7 insolvency admission follows proof of default and a complete application, triggering moratorium and IRP appointment.

A financial creditor's section 7 application under the Insolvency and Bankruptcy Code was admitted because default was established through loan documents, account statements, notice materials and the record of default, and the application was found to comply with the prescribed procedure under Rule 4. The Tribunal held that, once default exists and the application is complete, the Adjudicating Authority must admit the petition and commence the corporate insolvency resolution process. The proposed resolution professional was found eligible, moratorium followed, and an interim resolution professional was appointed for the corporate debtor.

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Issues: Whether the financial creditor had established default and compliance with the statutory requirements for admission of the section 7 application, and whether the corporate insolvency resolution process could be initiated with consequential moratorium and appointment of an interim resolution professional.

Analysis: The application was found to be supported by loan documents, statement of account, notice materials and record of default. The Tribunal relied on the statutory scheme governing financial creditor applications under section 7 of the Insolvency and Bankruptcy Code, 2016 and the prescribed procedure under Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. It applied the principle that the Adjudicating Authority must ascertain the existence of default and, once satisfied that default has occurred and the application is complete, admit the application. The Tribunal was also satisfied that the proposed resolution professional was eligible for appointment.

Conclusion: The section 7 application was admitted, the corporate insolvency resolution process was initiated, an interim resolution professional was appointed, and moratorium was for the corporate debtor.

Final Conclusion: The petition succeeded on merits and the insolvency process commenced against the corporate debtor with all consequential statutory directions.

Ratio Decidendi: Once a financial creditor establishes default and the section 7 application is complete, the Adjudicating Authority must admit the petition and initiate the insolvency process, including moratorium and appointment of an interim resolution professional.

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