Section 7 insolvency petition maintainable when debtor admissions and supporting records prove debt and default despite technical objections.

A section 7 insolvency petition is maintainable where financial debt and default are established through the corporate debtor's own written admissions and contemporaneous supporting records, even if objections are raised about stamping or the completeness of some documents. The tribunal relied on the assignment agreement, loan and security papers, charge-registration filings, bank statements, and later correspondence accepting restructuring to find the application complete and the debt proved. Technical objections to supporting instruments did not defeat admission when the claim was otherwise substantiated. Accordingly, the petition was admitted and CIRP, with moratorium and consequential directions, was ordered to commence.

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Issues: Whether the section 7 application was complete and maintainable, and whether the existence of financial debt and default stood proved despite objections regarding alleged insufficiency of stamping and incomplete supporting documents.

Analysis: The Petitioning Financial Creditor produced the assignment agreement, loan and security documents, charge registration papers, bank statements, the corporate debtor's own acknowledgment of liability, and later correspondence accepting restructuring of the liability. The corporate debtor's objections were confined to alleged incompleteness of the application and the stamping of certain agreements. The charge-registration objection was met by the filing of Form CHG-1 and the certificate of modification of charge. As to stamping, the corporate debtor had itself acted upon and relied on the agreements in earlier proceedings and in its financial statements. Even apart from those agreements, the debtor's admission in writing and other contemporaneous documents independently established the debt and default.

Conclusion: The application under section 7 was held to be complete, the financial debt and default were proved, and the insolvency petition was admitted.

Final Conclusion: Corporate insolvency resolution process was ordered to commence against the corporate debtor, and moratorium with consequential directions was imposed.

Ratio Decidendi: A section 7 insolvency petition is maintainable where debt and default are established through the debtor's admissions and other reliable documents, and technical objections to supporting instruments do not defeat admission when the application is otherwise complete.

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