Section 7 insolvency admission turns on proven default and complete compliance with filing requirements.

A Section 7 Insolvency and Bankruptcy Code application was treated as complete because the financial debt, disbursement records, account statements, charge documents and restructuring correspondence showed acknowledgment of liability and default in repayment of revised instalments. The restructuring was revoked after the instalment due on 15.06.2017 remained unpaid beyond the contractual grace period. As the petition satisfied Section 7 and Rule 4(2) requirements and no disciplinary proceeding was shown against the proposed interim resolution professional, the application was admitted, CIRP was commenced, a moratorium was declared, and the proposed interim resolution professional was appointed.

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Issues: Whether the petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and a default had occurred so as to admit the application and commence the corporate insolvency resolution process.

Analysis: The financial debt, disbursement history, account statements, charge documents, and the restructuring correspondence established that the corporate debtor had acknowledged liability and had defaulted in meeting the revised instalments. The restructuring was revoked after the instalment due on 15.06.2017 remained unpaid beyond the contractual grace period. The application was found to satisfy the requirements of Section 7 of the Code and Rule 4(2) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, and no disciplinary proceeding was shown against the proposed interim resolution professional.

Conclusion: The petition was held admissible and the corporate insolvency resolution process was ordered to commence, with appointment of the proposed interim resolution professional and declaration of moratorium.

Final Conclusion: The insolvency application succeeded on proof of default and statutory compliance, resulting in admission of the petition, commencement of CIRP, and consequential moratorium and ancillary directions.

Ratio Decidendi: A Section 7 application is liable to be admitted when default is established and the application is otherwise complete in compliance with the Code and the applicable rules.

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