Section 7 insolvency admission follows proof of default, with CIRP, moratorium and IRP appointment ordered.

An application under section 7 of the Insolvency and Bankruptcy Code was admitted because the financial creditor proved the sanctioned loans, assignment of debt, prior recovery steps and the continuing outstanding liability, while the corporate debtor did not seriously dispute the debt and its objection to computation lacked supporting material. Default was therefore established on the record, satisfying the requirements for admission. The proposed interim resolution professional had given consent and no disciplinary concern was shown, so the corporate insolvency resolution process was ordered, moratorium was declared 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 deserved admission on proof of default and whether the corporate insolvency resolution process and moratorium were to be initiated.

Analysis: The Financial Creditor established the sanctioned loans, assignment of debt, prior recovery proceedings and the continuing outstanding liability. The Corporate Debtor did not seriously dispute the debt and its objection to the computation was rejected for want of supporting material. On the record, default stood proved and the requirements for admission under section 7 were satisfied. The proposed interim resolution professional had furnished consent and no disciplinary issue was shown.

Conclusion: The application was admitted, the corporate insolvency resolution process was ordered, moratorium was declared and the interim resolution professional was appointed.

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