Section 7 insolvency admission turns on proof of default; objections lose relevance once non-payment is established.

A Section 7 insolvency application under the Insolvency and Bankruptcy Code, 2016 was supported by the sanction letter, loan documents and account statements showing that the corporate debtor had availed the financial facility and failed to repay the outstanding debt. The tribunal treated the debtor's objections as not relevant at the admission stage once default was shown, found the application complete, and approved the proposed interim resolution professional. On that basis, default was held established, the application was admitted, moratorium was ordered, and the corporate insolvency resolution process was initiated.

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Issues: Whether the financial creditor established default so as to warrant admission of the application under Section 7 of the Insolvency and Bankruptcy Code, 2016, and consequential initiation of the corporate insolvency resolution process.

Analysis: The application was supported by the sanction letter, loan documents, account statement, and other material showing that the corporate debtor had availed the financial facility and had not repaid the outstanding debt. The objections raised by the corporate debtor were not considered relevant at the stage of admission of a Section 7 application once default was shown. The application was also found to be complete, and the proposed interim resolution professional was found fit for appointment.

Conclusion: The default was established and the application was admitted, with moratorium ordered and an interim resolution professional appointed.

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