Insolvency admission turns on proved default, proper filing, and absence of disciplinary proceedings against the proposed resolution professional.

A financial creditor established default where the loan facility had been sanctioned and disbursed, the debt remained unpaid despite repeated demands, and the record showed subsisting default. The application also satisfied the procedural requirements for admission under the Insolvency Code because it was filed in the prescribed form with the requisite fee, was within limitation, and no disciplinary proceeding was pending against the proposed insolvency resolution professional. The Adjudicating Authority therefore held the application maintainable, admitted it, and ordered moratorium to operate in accordance with the Insolvency Code after substitution of the proposed resolution professional.

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Issues: Whether the financial creditor established default in repayment of financial debt and satisfied the requirements for admission of the application under the insolvency code.

Analysis: The loan facility was sanctioned and disbursed, the debt remained unpaid despite repeated demands, and the record showed subsisting default. The application was filed in the prescribed form with the requisite fee, limitation was not a bar, and no disciplinary proceeding was pending against the proposed insolvency resolution professional. The Adjudicating Authority therefore found the statutory requirements for admission under the insolvency code to be satisfied and also directed substitution of the proposed resolution professional before the moratorium would take effect.

Conclusion: The application was held maintainable and admitted, with moratorium ordered to operate in accordance with the insolvency code.

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