Section 7 insolvency admission follows proof of financial debt, default, and statutory compliance; CIRP commences

Where financial debt and default are established by the documentary record, and the applicant complies with the statutory requirements for admission under Section 7 of the Insolvency and Bankruptcy Code, the petition is maintainable and must be admitted. The Tribunal noted supporting loan and account records, found the default proved, and accepted that the proposed Interim Resolution Professional was suitable on the basis of the filed declaration and written communication. The Corporate Insolvency Resolution Process was therefore commenced against the corporate debtor, moratorium was imposed, public announcement was directed, and the Interim Resolution Professional was appointed.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was maintainable and liable to be admitted on proof of financial debt, default, and compliance with the statutory requirements.

Analysis: The application was supported by the sanction letter, loan documents, account statement, banker's certificate, CIBIL extract, and notice material showing default in repayment. The corporate debtor did not contest the petition. The Tribunal found that the existence of default stood proved and that the applicant had satisfied the requirements for admission under Section 7(3) of the Insolvency and Bankruptcy Code, 2016. The proposed Interim Resolution Professional was also found suitable on the basis of the filed declaration and written communication.

Conclusion: The application under Section 7 was admitted and Corporate Insolvency Resolution Process was commenced against the corporate debtor. Moratorium was , public announcement was directed, and the Interim Resolution Professional was appointed.

Ratio Decidendi: Where financial debt and default are established by the documentary record and the statutory requirements under Section 7 are met, the application for commencement of Corporate Insolvency Resolution Process is to be admitted and moratorium follows.

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