Jurisdiction and proof of default under IBC led to admission of the section 7 insolvency application and CIRP commencement.

Jurisdictional objection to admission of a section 7 Insolvency and Bankruptcy Code application was rejected because the alternate NCLT bench had not yet become functional and the Chennai Bench was handling matters for that region when the application was filed. On default, the record showed sanctioned and renewed credit facilities, executed loan and guarantee documents, balance confirmations, written acknowledgments of liability, assignment of debt, and proof of outstanding dues; the corporate debtor did not dispute the merits. These materials were treated as sufficient to establish default, so the application was admitted, CIRP commenced, an interim resolution professional was appointed, and moratorium was declared.

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Issues: (i) Whether the adjudicating authority lacked jurisdiction on the ground that the matter allegedly fell within the jurisdiction of another NCLT bench. (ii) Whether the financial creditor had established default so as to warrant admission of the application under the Insolvency and Bankruptcy Code, 2016.

Issue (i): Whether the adjudicating authority lacked jurisdiction on the ground that the matter allegedly fell within the jurisdiction of another NCLT bench.

Analysis: The objection was rejected because the other bench had not become functional and matters relating to that region were being dealt with by the Chennai Bench. The application had also been filed before the notified functioning of that bench.

Conclusion: The jurisdictional objection was held to be without merit.

Issue (ii): Whether the financial creditor had established default so as to warrant admission of the application under the Insolvency and Bankruptcy Code, 2016.

Analysis: The record showed sanction and renewal of credit facilities, execution of loan and guarantee documents, confirmation of balance, written acknowledgments of liability, assignment of debt in favour of the applicant, and documentary proof of outstanding dues. The corporate debtor did not contest the merits and the materials were found sufficient to establish default.

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

Final Conclusion: The proceeding resulted in commencement of insolvency resolution against the corporate debtor with all consequential CIRP measures directed by the adjudicating authority.

Ratio Decidendi: Where documentary evidence and admitted liability establish default, an application under section 7 of the Insolvency and Bankruptcy Code, 2016 must be admitted, and jurisdictional objections unsupported by the notified functioning of the alternate bench do not defeat admission.

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