Section 10 insolvency application admitted on proof of debt and default, triggering CIRP, moratorium, and IRP appointment.

An application under Section 10 of the Insolvency and Bankruptcy Code, 2016 was found maintainable where loan documents, creditor statements, books of account and financial statements sufficiently established outstanding debt and default. On that material, the National Company Law Tribunal held that the requirements for admission were met and admitted the application. The corporate insolvency resolution process was initiated, moratorium was declared, and the proposed interim resolution professional was appointed, with directions to comply with the Code and related process requirements.

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Issues: Whether the application under Section 10 of the Insolvency and Bankruptcy Code, 2016 was maintainable and whether the corporate insolvency resolution process was liable to be initiated on proof of default.

Analysis: The application was supported by loan documents, creditor statements, books of account, financial statements and other records showing outstanding financial and operational debt. The record also reflected default by the corporate debtor, and the material placed before the Authority was found sufficient to establish that the debt and default requirements for admission were satisfied. On that basis, the application was held fit for admission under Section 10 of the Insolvency and Bankruptcy Code, 2016. Consequent directions were issued for commencement of the corporate insolvency resolution process, declaration of moratorium, and appointment of the proposed interim resolution professional, with directions to comply with the duties and process requirements under the Code.

Conclusion: The application was admitted, corporate insolvency resolution process was initiated, moratorium was declared, and the interim resolution professional was appointed.

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