Section 7 insolvency admission turns on authority, completeness and proof of default under the Insolvency and Bankruptcy Code.

A Section 7 insolvency application was described as maintainable where the financial creditor was duly authorised by authority letter and general power of attorney to initiate insolvency and recovery proceedings. The application was treated as complete because it was filed in the prescribed form, the proposed interim resolution professional furnished the required written communication, and documentary material such as balance confirmations, bank statements, recall notice and demand notice supported default. On that basis, the petition was admitted and moratorium under the Insolvency and Bankruptcy Code was directed to operate against suits, transfers and enforcement actions, subject to protection of essential supplies.

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Issues: (i) whether the petition was filed by a duly authorised person on behalf of the financial creditor; (ii) whether the application under Section 7 was complete and supported by the required proof of default and proposed interim resolution professional details; and (iii) whether the application deserved admission and moratorium under the insolvency law.

Issue (i): whether the petition was filed by a duly authorised person on behalf of the financial creditor

Analysis: The authority letter issued by the bank and the general power of attorney together showed express empowerment to institute insolvency and liquidation proceedings and to take all necessary legal steps for recovery of debts. The objection that the petition lacked valid authorisation was therefore not accepted.

Conclusion: The petition was held to have been filed by a competent and duly authorised person.

Issue (ii): whether the application under Section 7 was complete and supported by the required proof of default and proposed interim resolution professional details

Analysis: The application was filed in the prescribed form, the proposed interim resolution professional had furnished the necessary written communication, and the absence of a date on that form was treated as not fatal. The record also contained balance confirmations, bank statements certified under the relevant evidence law, recall notice, demand notice, and other material showing default. The application was therefore found to satisfy the statutory requirements for admission.

Conclusion: The application was held to be complete and supported by sufficient evidence of default.

Issue (iii): whether the application deserved admission and moratorium under the insolvency law

Analysis: Once default and completeness were established, the Adjudicating Authority was bound to admit the application under the governing provisions. The order also treated the Insolvency and Bankruptcy Code as a self-contained code having overriding effect over inconsistent laws, and directed the statutory moratorium to operate against suits, asset transfers, enforcement actions, and recovery of occupied property, while preserving essential supplies during the moratorium period.

Conclusion: The petition was admitted and moratorium was under the insolvency code.

Final Conclusion: The financial creditor succeeded in obtaining admission of the insolvency petition on proof of default and compliance with statutory requirements, and the corporate debtor was brought under moratorium pending the insolvency resolution process.

Ratio Decidendi: A Section 7 application under the Insolvency and Bankruptcy Code must be admitted where default is established, the application is complete, and the proposed resolution professional's requirements are satisfied, and the Code will prevail over inconsistent proceedings under other laws.

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