Section 7 insolvency admission turns on proven debt, default, complete papers, and no disciplinary bar on the proposed IRP.

Admission under section 7 of the Insolvency and Bankruptcy Code depends on proof of financial debt, default, a complete application, and the absence of pending disciplinary proceedings against the proposed interim resolution professional. The record here showed that the debt remained unpaid, the account was classified as a non-performing asset, and the application was otherwise complete. On that basis, the statutory requirements for initiation of corporate insolvency resolution were met, leading to commencement of the process, moratorium, and appointment of the interim resolution professional.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted on proof of financial debt, default, completeness of the application, and absence of disciplinary proceedings against the proposed interim resolution professional.

Analysis: The financial creditor established the existence of a financial debt and default in repayment. The record showed that the account was classified as a non-performing asset, the debt remained due, and the application was complete. The proposed interim resolution professional was found to be free from pending disciplinary proceedings. On these facts, the statutory conditions for admission under section 7 were satisfied.

Conclusion: The application under section 7 was admitted and the corporate insolvency resolution process was directed to commence, with moratorium and appointment of the interim resolution professional.

Ratio Decidendi: Once the adjudicating authority is satisfied that a financial debt exists, default has occurred, and the application is complete with no pending disciplinary proceedings against the proposed interim resolution professional, admission under section 7 follows.

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