Section 7 insolvency application succeeds when authorisation, default, completeness, and IRP eligibility are properly established.

An application under Section 7 of the Insolvency and Bankruptcy Code is maintainable where the financial creditor cures any initial authorisation defect by later board ratification and a fresh authority letter, establishes default through loan records and recall documentation, and shows that the application is otherwise complete. The proposed Interim Resolution Professional must also file the prescribed declaration confirming that no disciplinary proceedings are pending. On these findings, the petition was admitted, the corporate insolvency resolution process commenced, moratorium was imposed, and the Interim Resolution Professional was appointed in accordance with the Code and insolvency regulations.

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Issues: (i) whether the application under Section 7 was presented by a duly authorised person of the financial creditor; (ii) whether a default had occurred and the application was otherwise complete so as to merit admission under Section 7(5); and (iii) whether there were pending disciplinary proceedings against the proposed Interim Resolution Professional.

Issue (i): whether the application under Section 7 was presented by a duly authorised person of the financial creditor.

Analysis: The authority originally filed with the petition was supplemented by a subsequent board resolution and a fresh letter of authority expressly empowering the signatory to file the application and ratifying the steps already taken. On that basis, the filing defect stood cured and the application was treated as having been submitted by a competent authorised representative.

Conclusion: The issue was decided in favour of the financial creditor.

Issue (ii): whether a default had occurred and the application was otherwise complete so as to merit admission under Section 7(5).

Analysis: The financial creditor produced the sanction letters, facility agreements, bill register, computation of default, and loan recall notice to establish the disbursed financial assistance and the quantified default. The corporate debtor did not place material on record to disprove the default or to rebut the claim that the application was complete in all respects. The statutory conditions under Section 7(5) were thus satisfied.

Conclusion: The issue was decided in favour of the financial creditor.

Issue (iii): whether there were pending disciplinary proceedings against the proposed Interim Resolution Professional.

Analysis: The proposed Interim Resolution Professional filed the prescribed declaration stating that no disciplinary proceedings were pending and affirmed his eligibility for appointment in accordance with the insolvency regulations.

Conclusion: The issue was decided in favour of the financial creditor.

Final Conclusion: The petition was admitted, corporate insolvency resolution process commenced, moratorium was imposed, and the proposed Interim Resolution Professional was appointed to take charge and proceed in accordance with the Code and the applicable regulations.

Ratio Decidendi: An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 is liable to be admitted when the financial creditor establishes default, the application is complete, and no disciplinary proceedings are pending against the proposed resolution professional.

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