Section 7 IBC admission upheld after proof of default and compliance with application requirements.

A section 7 IBC petition was admitted where the financial creditor established disbursement and default through sanction documents, security documents, balance confirmations, account statements and credit records. The corporate debtor did not dispute execution of the loan documents or the existence of default, and objections on outstanding quantum, interest entries and part-payment were treated as issues for examination in the corporate insolvency resolution process. The application was also found to be in the prescribed form with the interim resolution professional's consent and particulars in order, so the CIRP was directed to commence with moratorium and appointment of the interim resolution professional.

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Issues: Whether the petition under section 7 of the Insolvency and Bankruptcy Code, 2016 deserved admission on proof of default and compliance with the prescribed application requirements.

Analysis: The financial creditor produced the sanction documents, security documents, balance confirmation letters, account statements and credit information records to establish disbursement and default. The corporate debtor did not dispute execution of the loan documents or the existence of default, and its objections regarding the quantum of outstanding dues, alleged interest entries and part-payment were treated as matters capable of examination during the corporate insolvency resolution process. The application was filed in the prescribed form under rule 4(1) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, and the proposed interim resolution professional's consent and particulars were found to be in order.

Conclusion: The petition was rightly admitted and the corporate insolvency resolution process was directed to commence, with moratorium and appointment of the interim resolution professional.

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