Section 7 insolvency admission turns on proved default and a complete application; objections on resolution talks did not defeat CIRP.

Once default was established and the section 7 application was otherwise complete, the Adjudicating Authority applied the statutory admission test under the Insolvency and Bankruptcy Code and held that pending resolution efforts, consortium discussions, and RBI-related objections did not defeat maintainability. The admitted materials showed no effective dispute on debt or default, and no disciplinary proceeding was pending against the proposed resolution professional. On that basis, the application satisfied section 7(5)(a), Corporate Insolvency Resolution Process was directed to commence against the corporate debtor, an Interim Resolution Professional was appointed, and moratorium was declared.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and maintainable, and whether the admitted default justified commencement of the Corporate Insolvency Resolution Process and imposition of moratorium.

Analysis: The admitted materials showed occurrence of default and there was no effective dispute on the debt and default. The objections raised by the corporate debtor concerning the ongoing resolution efforts, consortium discussions, and RBI-related contentions were held not to affect the statutory test under section 7. The application was found to be complete, and no disciplinary proceeding was pending against the proposed resolution professional. On that basis, the statutory conditions for admission under section 7(5)(a) were satisfied.

Conclusion: The application was admitted and Corporate Insolvency Resolution Process was directed to commence against the corporate debtor.

Final Conclusion: The proceeding resulted in commencement of insolvency resolution against the corporate debtor, with appointment of an Interim Resolution Professional and declaration of moratorium.

Ratio Decidendi: Once default is established and the section 7 application is otherwise complete, the Adjudicating Authority must admit the application and initiate Corporate Insolvency Resolution Process.

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