Insolvency petition completeness and limitation satisfied, leading to admission, moratorium, and appointment of an Interim Resolution Professional.

A section 7 application under the Insolvency and Bankruptcy Code was found complete because loan documents, certified account statements, CIBIL records, acknowledgement of debt, and security papers established financial debt and default. The Tribunal also held that pending SARFAESI or DRT proceedings do not bar initiation of CIRP. The petition was further held to be within limitation on the basis of mortgage documents, recovery proceedings, continued account credits, and acknowledgements. On admission, moratorium was declared and the proposed Interim Resolution Professional was appointed to conduct the CIRP and make the public announcement.

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Issues: (i) Whether the petition under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and disclosed financial debt and default so as to warrant admission; (ii) whether the petition was within limitation; (iii) the consequential reliefs on admission, including moratorium and appointment of an Interim Resolution Professional.

Issue (i): Whether the petition under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and disclosed financial debt and default so as to warrant admission.

Analysis: The application was supported by loan documents, account statements certified under the Bankers' Books Evidence Act, 1891, CIBIL records, acknowledgement of debt, and other security documents. The records established the existence of a financial debt, due liability, and default on the stated date. The Tribunal also noted that pendency of SARFAESI or DRT proceedings does not bar initiation of CIRP under the Code.

Conclusion: The issue was decided in favour of the petitioner and the application was held complete for admission under section 7.

Issue (ii): Whether the petition was within limitation.

Analysis: The Tribunal relied on the mortgage documents, SARFAESI action, DRT proceedings, continued account credits, and the acknowledgement of debt and security to hold that the application was filed within the permissible period.

Conclusion: The issue was decided in favour of the petitioner and the petition was held to be within limitation.

Issue (iii): The consequential reliefs on admission, including moratorium and appointment of an Interim Resolution Professional.

Analysis: On admission of the petition, the Tribunal ordered declaration of moratorium under the Code and appointed the proposed Interim Resolution Professional to conduct the CIRP and make the public announcement.

Conclusion: The petition was admitted, moratorium was , and the Interim Resolution Professional was appointed.

Final Conclusion: The insolvency application succeeded, leading to commencement of CIRP against the corporate debtor with attendant moratorium and insolvency process directions.

Ratio Decidendi: Where financial debt, default, and completeness of the section 7 application are established and the claim is within limitation, the adjudicating authority must admit the petition and commence CIRP with moratorium and appointment of an interim resolution professional.

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