Section 10 insolvency applications must be tested on the Code and Form 6, not on extraneous SARFAESI considerations.

An application under Section 10 of the Insolvency and Bankruptcy Code must be assessed on the statutory requirements, the disclosures in Form 6, and the ineligibility grounds under Section 11. Rejection cannot rest on extraneous considerations unrelated to corporate insolvency resolution, and the mere pendency of SARFAESI proceedings is not, by itself, a ground to refuse a complete application under Section 10; any such proceedings would instead be affected by the moratorium on admission. In the absence of any winding up or liquidation order, the corporate applicant remained eligible to seek commencement of insolvency proceedings, and rejection on unrelated grounds was unsustainable.

---

---

Issues: Whether an application under Section 10 of the Insolvency and Bankruptcy Code, 2016 could be rejected on the basis of extraneous facts unrelated to the requirements of the Code and Form 6, and whether the existence of SARFAESI proceedings by itself could justify such rejection.

Analysis: An application under Section 10 is to be tested on the basis of the statutory requirements, the disclosures mandated in Form 6, and the ineligibility grounds under Section 11. The application cannot be rejected by travelling beyond those records and by relying on considerations unrelated to corporate insolvency resolution. Pendency of measures under the SARFAESI Act does not constitute a ground to reject a complete application under Section 10, though such proceedings would be affected by the moratorium upon admission. In the absence of any winding up order or liquidation order, the corporate applicant was eligible to seek initiation of insolvency proceedings.

Conclusion: The rejection of the Section 10 application on extraneous grounds was unsustainable, and the corporate applicant's request for admission of the insolvency process was required to be considered in accordance with the Code.

---