Financial debt and default established under section 7; insolvency petition admitted and moratorium with resolution process commenced.

Financial debt and default were established through loan documents, security documents, a revival letter and charge documents showing credit facilities and non-payment by the corporate debtor. As the corporate debtor did not effectively dispute the borrowing, mortgage, asset classification as non-performing, or outstanding liability, the Tribunal found the section 7 requirements satisfied. The application was admitted, moratorium followed, and an interim resolution professional was appointed.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was maintainable on proof of financial debt and default, warranting admission and commencement of the corporate insolvency resolution process.

Analysis: The application was supported by loan documents, security documents, revival letter, charge documents, and other materials showing advancement of credit facilities and non-payment by the corporate debtor. The corporate debtor did not dispute the borrowing, creation of mortgage, classification of the account as non-performing asset, or the outstanding liability. On the material placed before it, the Tribunal was satisfied that financial debt and default were established.

Conclusion: The section 7 application was admitted, moratorium was , and an interim resolution professional was appointed.

Ratio Decidendi: Where the record discloses financial debt and default and the corporate debtor does not effectively dispute the liability, admission under section 7 of the Insolvency and Bankruptcy Code, 2016 follows with consequential moratorium and insolvency resolution steps.

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