Section 7 insolvency admission turns on proved debt, default, and compliance with filing requirements for CIRP initiation.

An application under Section 7 of the Insolvency and Bankruptcy Code is admitted where debt and default are established and the statutory filing requirements are satisfied. The text notes that notice was served on the corporate debtor, which did not appear and was proceeded ex parte, and that the proposed insolvency resolution professional was named with no pending disciplinary proceeding against him. On those facts, the tribunal admitted the application and directed commencement of the Corporate Insolvency Resolution Process.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted for initiation of the Corporate Insolvency Resolution Process.

Analysis: The appellate tribunal had already set aside the earlier dismissal, held that the debt was payable and default had occurred, and remitted the matter for admission after notice. In the remanded proceedings, notice was served on the corporate debtor, which remained absent and was proceeded ex parte. The application was found to satisfy the requirements of Section 7, including the proposal of an insolvency resolution professional and the absence of any pending disciplinary proceeding against him.

Conclusion: The application was admitted and the Corporate Insolvency Resolution Process was directed to commence against the corporate debtor.

Ratio Decidendi: Where debt and default stand established and the statutory requirements for a Section 7 application are met, the application is to be admitted and CIRP is to be initiated.

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