Section 7 insolvency application maintained without all consortium lenders' consent where default and completeness were proved.

A Section 7 Insolvency and Bankruptcy Code application was found complete where the financial creditor supported default with loan documents, sanction letters, acknowledgements of debt, bank statements and a CIBIL report. The Tribunal also noted that the proposed interim resolution professional's eligibility was supported by Form-2 showing no pending disciplinary proceeding. It further held that consent of all consortium lenders is not a precondition for maintainability by one financial creditor. On that basis, the statutory requirements for admission were satisfied and the corporate insolvency resolution process, moratorium and appointment of an interim resolution professional followed.

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Issues: Whether the financial creditor established default and compliance with the requirements of Section 7 of the Insolvency and Bankruptcy Code, 2016 so as to warrant admission of the application and commencement of the corporate insolvency resolution process, with consequential moratorium and appointment of an interim resolution professional.

Analysis: The financial creditor produced the loan documents, sanction letters, acknowledgements of debt, bank statements, CIBIL report and other materials to show the subsisting liability and default. The application was found complete under Section 7 of the Insolvency and Bankruptcy Code, 2016, and the proposed interim resolution professional's eligibility was supported by Form-2 showing no pending disciplinary proceeding. The Tribunal further held that consent of all consortium lenders was not a precondition for maintainability of the application by one financial creditor. On that basis, the statutory requirements for admission were satisfied.

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

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