Section 7 insolvency filing upheld where default, completeness, and eligibility of the interim resolution professional were established.

A section 7 insolvency application was held admissible where the financial creditor was duly authorised to file it, and the bank's account statements and supporting affidavits were accepted as compliant with the Bankers' Books Evidence Act. The Tribunal found substantial material showing overdue financial debt and default beyond the statutory threshold, and held that the application met the prescribed form and contents under the Code and rules. Objections regarding consortium lenders, the date of disbursement, NPA classification, restructuring, and the earlier proposed interim resolution professional were rejected. The substituted interim resolution professional was found eligible, and admission, moratorium, and commencement of CIRP followed.

---

---

Issues: (i) Whether the financial creditor was duly authorised to file the section 7 application and whether the banking records complied with the requirements of the Bankers' Books Evidence Act; (ii) Whether default had occurred and the section 7 application was complete so as to warrant admission and appointment of the interim resolution professional.

Issue (i): Whether the financial creditor was duly authorised to file the section 7 application and whether the banking records complied with the requirements of the Bankers' Books Evidence Act

Analysis: The application was filed through an officer authorised by the bank under the relevant regulations and notification, and the objection to authority was rejected. The account statements and supporting affidavits showed that the records were maintained in the bank's computer system in the ordinary course of business, with sufficient safeguards and certification of correctness. The evidentiary objection based on the Bankers' Books Evidence Act was found to be without merit.

Conclusion: The filing was held to be duly authorised and the bank records were accepted as compliant.

Issue (ii): Whether default had occurred and the section 7 application was complete so as to warrant admission and appointment of the interim resolution professional

Analysis: The Tribunal found substantial material showing overdue financial debt and default beyond the statutory threshold. It held that the application satisfied the prescribed form and contents under the Code and the relevant application rules. The objections regarding consortium lenders, absence of date of disbursement, NPA classification, restructuring, and alleged conflict in the earlier proposed resolution professional were rejected. The substituted proposed interim resolution professional was found eligible, with no disciplinary proceedings pending against him.

Conclusion: Default was established, the application was complete, and admission of the application with appointment of the interim resolution professional was justified.

Final Conclusion: The insolvency application was admitted, moratorium was declared, and the corporate insolvency resolution process was set in motion with the substituted interim resolution professional appointed.

Ratio Decidendi: A section 7 application is admissible when a financial default is established, the application is complete in the prescribed form, and the proposed interim resolution professional is eligible; evidentiary objections to bank records do not defeat the petition where statutory compliance is substantially shown.

---