Corporate debtor insolvency applications are admitted on proof of default and compliance with statutory filing requirements.

A corporate debtor's application under section 10 of the Insolvency and Bankruptcy Code, 2016 was found admissible where the record disclosed default to financial creditors and the supporting financial materials, liabilities, charges, and proposed interim resolution professional's consent satisfied the statutory requirements. On that basis, the application was admitted, the corporate insolvency resolution process commenced, moratorium followed, and the proposed interim resolution professional was appointed as mandated by the Code.

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Issues: Whether the corporate applicant was entitled to admission of the petition under section 10 of the Insolvency and Bankruptcy Code, 2016 and commencement of the corporate insolvency resolution process with moratorium and appointment of an interim resolution professional.

Analysis: The petition was filed by the corporate debtor itself under section 10 of the Insolvency and Bankruptcy Code, 2016 read with rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The record showed default to financial creditors, supporting material regarding liabilities, financial statements, charges, and the proposal and consent of the proposed interim resolution professional. On the basis of the disclosed default and the statutory requirements, the petition was found fit for admission and the statutory consequences of admission followed.

Conclusion: The petition was admitted, the corporate insolvency resolution process was initiated, moratorium was declared, and the proposed interim resolution professional was appointed.

Ratio Decidendi: A petition by a corporate debtor under section 10 of the Insolvency and Bankruptcy Code, 2016 is liable to be admitted when default is shown and the statutory requirements for initiation of the corporate insolvency resolution process are satisfied, whereupon moratorium and appointment of an interim resolution professional follow as mandated by the Code.

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