Section 7 insolvency admission follows proof of default, limitation compliance, and a valid interim resolution professional declaration.

Section 7 of the Insolvency and Bankruptcy Code was found complete because the lender placed account statements and a supporting certificate on record, the corporate debtor did not dispute the loan account being classified as a non-performing asset, and default was specifically quantified. The objection that particulars were filled in after execution of the documents was unsupported by evidence, and other factual circumstances raised by the corporate debtor were treated as irrelevant to default. The application was also within limitation, and the proposed interim resolution professional had filed the required declaration. The application was admitted, Corporate Insolvency Resolution Process commenced, moratorium followed, and the interim resolution professional was appointed.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and whether default was proved so as to warrant admission of the Corporate Insolvency Resolution Process.

Analysis: The loan account had been declared non-performing asset on 31-12-2015 and the corporate debtor did not dispute that position. The account statements and supporting certificate were placed on record, and the default amount was specifically quantified. The objection regarding alleged filling of particulars after execution of documents was unsupported by evidence. The other factual circumstances urged on behalf of the corporate debtor were held to be irrelevant to the issue of default. Since the application was filed on 16-4-2018, it was within limitation. The proposed interim resolution professional also furnished the required declaration that no disciplinary proceedings were pending.

Conclusion: The application satisfied the requirements of section 7(5)(a) and was admitted. The Corporate Insolvency Resolution Process was ordered to commence, moratorium was , and the interim resolution professional was appointed.

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