Section 7 insolvency admission sustained where notice, hearing, and admitted default defeated claims of procedural unfairness and payment.

Admission of an insolvency application under section 7 of the Insolvency and Bankruptcy Code was challenged on the grounds of alleged denial of opportunity, alleged payment by the corporate debtor, and non-handover of documents and assets to the resolution professional. The record showed that the corporate debtor had been noticed and heard, with representation through advocates, so the absence of a counter-statement did not establish procedural infirmity. On the merits, the default was treated as admitted in part and the outstanding debt remained above the statutory threshold, while the appellate challenge did not dislodge the finding of non-payment. The additional grievance regarding non-handover of documents and assets did not undermine the admission order.

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Issues: Whether the order admitting the insolvency application under section 7 of the Insolvency and Bankruptcy Code, 2016 called for interference on the grounds of alleged denial of opportunity and alleged payment by the corporate debtor.

Analysis: The record showed that the corporate debtor had been noticed and heard before the Adjudicating Authority and had been represented by advocates. The challenge based on absence of a counter-statement therefore did not establish any procedural infirmity. On the merits, the default was admitted to be a part default and the amount outstanding was far above the statutory threshold. The appellate challenge also did not dislodge the finding that the debt remained unpaid. The additional grievance regarding non-handover of documents and assets to the resolution professional did not provide any basis to unsettle the admission order.

Conclusion: The appeal did not merit interference and was liable to be dismissed against the appellant.

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