Corporate insolvency petition under the IBC admitted after default, compliance with filing requirements, and commencement of moratorium.

A section 10 Insolvency and Bankruptcy Code petition was treated as maintainable where the company qualified as a corporate applicant and corporate debtor, default in repayment to secured and operational creditors was shown, and the filing requirements, including disclosure of the proposed interim resolution professional, were complied with. Pending BIFR-related proceedings and prior SARFAESI action did not bar admission once the corporate insolvency resolution process was otherwise established on the facts and under the Code. The petition was admitted, an interim resolution professional was appointed, and moratorium commenced under section 14.

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Issues: Whether the petition under section 10 of the Insolvency and Bankruptcy Code, 2016 was maintainable and liable to be admitted, and whether moratorium and appointment of an interim resolution professional were warranted.

Analysis: The petitioning company was treated as a corporate applicant and a corporate debtor within the meaning of the Code. The record showed default in repayment to secured and operational creditors, compliance with the filing requirements under section 10, and disclosure of the proposed interim resolution professional. The pendency of BIFR-related proceedings and the earlier action under the SARFAESI regime did not prevent admission once the corporate insolvency resolution process was otherwise made out on the facts and statutory requirements were satisfied.

Conclusion: The petition was admitted under section 10(4)(a) of the Insolvency and Bankruptcy Code, 2016, the interim resolution professional was appointed, and moratorium was ordered under section 14 of the Code.

Ratio Decidendi: A corporate applicant that answers the description of a corporate debtor and has committed default is entitled to admission of a section 10 insolvency petition when the statutory filing requirements are complied with, followed by appointment of an interim resolution professional and commencement of moratorium.

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