Section 10 insolvency applications remain admissible on completeness and Section 11 eligibility, despite SARFAESI recovery objections.

A corporate debtor's Section 10 insolvency application is complete and maintainable when default is shown and the prescribed particulars are furnished, including the proposed interim resolution professional and board approval. In that situation, the adjudicating authority is confined to examining completeness of the application and any ineligibility under Section 11 of the Insolvency and Bankruptcy Code. Objections based on pending SARFAESI recovery proceedings do not, by themselves, defeat a complete Section 10 application or amount to a valid ground for refusal of admission. The application was treated as complete and admissible, and the maintainability objections were rejected.

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Issues: Whether the corporate debtor's application under Section 10 of the Insolvency and Bankruptcy Code, 2016 was complete and maintainable despite objections based on SARFAESI proceedings and alleged misuse of insolvency process.

Analysis: The application was examined with reference to the statutory scheme governing initiation of corporate insolvency resolution process by a corporate applicant. Once the corporate debtor had committed default and had furnished the prescribed particulars, including the proposed interim resolution professional and the board approval, the adjudicating authority was required to test only completeness of the application and any ineligibility under Section 11 of the Code. The objections founded on pending recovery action under the SARFAESI Act did not constitute a valid ground to admission of a complete Section 10 application. The authority relied on settled principles that, where default exists and no disqualification under Section 11 is shown, admission follows and other collateral objections do not defeat the application.

Conclusion: The application under Section 10 was held to be complete and admissible, and the objections to maintainability were rejected.

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