IBC Section 7 insolvency admission follows default evidence, with moratorium and Interim Resolution Professional appointment.

Section 7 of the Insolvency and Bankruptcy Code, 2016 was invoked by a financial creditor against the corporate debtor on the basis of alleged financial debt, default, and security created over current assets, fixed assets, and mortgaged properties. The text records that SARFAESI measures were also taken, including demand notice, symbolic possession, and recall of outstanding dues. The Tribunal admitted the insolvency application, appointed an Interim Resolution Professional, directed public announcement, and declared moratorium under Section 14, restraining suits, recovery actions, transfer of assets, and enforcement of security interests.

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Issues: Whether the financial creditor proved default so as to warrant admission of the application under section 7 of the Insolvency and Bankruptcy Code, 2016 and initiation of the corporate insolvency resolution process.

Analysis: The application was supported by loan and consortium documents, security documents, account statements, demand and recall notices, and other material showing disbursement of financial facilities, acknowledgment of liability, classification of default, and outstanding dues. The corporate debtor did not file a reply despite opportunity. On the record, the default was established by documentary evidence.

Conclusion: The application under section 7 was admitted and the corporate insolvency resolution process was initiated in favour of the financial creditor.

Final Conclusion: Insolvency proceedings were commenced against the corporate debtor, an interim resolution professional was appointed, and moratorium followed.

Ratio Decidendi: A section 7 application is admitted when the financial creditor establishes a financial debt and occurrence of default through credible documentary evidence.

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