Section 7 insolvency admission turns on proved debt and default, triggering CIRP, interim resolution professional appointment, and moratorium.

A Section 7 application under the Insolvency and Bankruptcy Code was found maintainable because the corporate debtor did not seriously dispute the debt or default, and the record showed disbursement, partial repayment, and continued non-payment supported by receipts, ledger entries, bank statements, promissory notes, and notices. The prescribed filing requirements and the proposed resolution professional's consent were also in order, so the statutory conditions for admission were satisfied. On admission, the Corporate Insolvency Resolution Process commenced, an Interim Resolution Professional was appointed, public announcement followed, and the statutory moratorium took effect in favour of the financial creditors.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was maintainable and whether the Corporate Debtor's default and admission justified commencement of the Corporate Insolvency Resolution Process, appointment of an Interim Resolution Professional, and declaration of moratorium.

Analysis: The Corporate Debtor admitted that loans had been availed from the Financial Creditors and did not seriously dispute the existence of debt or default. The record contained receipts, ledger entries, bank statements, promissory notes, and notices evidencing disbursement of funds and partial repayment, followed by non-payment of the balance. The application was supported by the prescribed documents and the proposed resolution professional had furnished the requisite consent. On this basis, the statutory requirements for admission under Section 7 were satisfied. Upon admission, the Code required initiation of the insolvency process, appointment of an interim resolution professional, public announcement, and the statutory moratorium.

Conclusion: The application was admitted, the Corporate Insolvency Resolution Process was commenced, an Interim Resolution Professional was appointed, and moratorium was declared in favour of the Financial Creditors.

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