Section 7 insolvency admission turns on debt, default, and completeness; collateral disputes cannot block CIRP initiation.

Once a financial creditor establishes financial debt, default, and completeness of a section 7 application under the Insolvency and Bankruptcy Code, the adjudicating authority must admit the petition. Objections based on financial hardship, pending DRT proceedings, alleged excess interest, or other disputes do not defeat admission at that stage because the inquiry is limited to default and procedural completeness. The proposed interim resolution professional was found eligible and free from disciplinary proceedings, so the application satisfied the admission requirements. The petition was admitted, the corporate insolvency resolution process was initiated, and moratorium under section 14 followed.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and discloses default so as to admit the Corporate Insolvency Resolution Process, and whether the objections raised by the corporate debtor could defeat admission.

Analysis: The financial creditor produced the loan documents, account statement, and notice under section 13(2) of the SARFAESI Act, 2002 to establish the financial debt and the default. The objections regarding financial hardship, pending proceedings before the DRT, alleged excess interest, and other disputes were held irrelevant at the stage of admission, as the governing test is whether default has occurred and the application is otherwise complete. The proposed interim resolution professional was found eligible and no disciplinary proceedings were pending against him. The requirements for admission under section 7 were therefore satisfied, and moratorium under section 14 followed upon admission.

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

Final Conclusion: The order fastens insolvency consequences on the corporate debtor, imposes moratorium, and appoints an interim resolution professional for continuation of the insolvency process.

Ratio Decidendi: Once a financial creditor establishes a financial debt, default, and completeness of the section 7 application, the adjudicating authority must admit the petition and cannot decline admission on disputed questions raised by the corporate debtor at that stage.

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