Section 7 insolvency admission turns on proven financial debt, default, limitation compliance and valid authorisation of the filing signatory.

A section 7 insolvency application is admissible when the record shows a financial debt, default and compliance with limitation, and the application is complete for CIRP initiation. Here, the Tribunal found that the corporate debtor had availed credit facilities, the debt exceeded the statutory threshold, default occurred on 28.01.2020 and the filing was within limitation, so admission was justified. It also held that the application was duly filed by an authorised signatory, relying on SBI General Regulations, 1955 and the relevant Gazette notification empowering specified officers to sign pleadings and affidavits. The CIRP was commenced, moratorium declared and an interim resolution professional appointed.

---

---

Issues: (i) Whether the applicant established the existence of a financial debt, default, and timeliness for admission of the application under the Insolvency and Bankruptcy Code, 2016; (ii) Whether the application was competently filed by an authorised signatory of the financial creditor.

Issue (i): Whether the applicant established the existence of a financial debt, default, and timeliness for admission of the application under the Insolvency and Bankruptcy Code, 2016.

Analysis: The record showed that the corporate debtor had availed credit facilities from the financial creditor and that the debt exceeded the statutory threshold. The default was found to have occurred on 28.01.2020, and the application was held to be within limitation. The Tribunal also found the section 7 application complete for the purpose of initiating corporate insolvency resolution process.

Conclusion: The issue was answered in favour of admitting the section 7 application.

Issue (ii): Whether the application was competently filed by an authorised signatory of the financial creditor.

Analysis: The Tribunal accepted the financial creditor's reliance on Regulations 76 and 77 of the State Bank of India General Regulations, 1955 and the Gazette notification authorising specified officers to sign pleadings and affidavits on behalf of the bank. On that basis, the filing by the Chief Manager was treated as duly authorised.

Conclusion: The issue was answered in favour of the financial creditor.

Final Conclusion: The corporate insolvency resolution process was commenced against the corporate debtor, moratorium was declared, and an interim resolution professional was appointed.

Ratio Decidendi: A section 7 application is admissible where the tribunal is satisfied as to the existence of a financial debt, default, limitation, and due authorisation of the filing signatory.

---