Financial debt and continuing acknowledgment of liability supported admission of the insolvency application within limitation.

A section 7 Insolvency and Bankruptcy Code application was found maintainable where the financial creditor produced loan documents, credit facility revisions, an assignment deed, acknowledgments of liability, revival letters, and a one-time settlement proposal. The Bench treated the corporate debtor's continuing correspondence and conduct as evidence of subsisting liability, and also noted that the account had been classified as a non-performing asset. On that material, financial debt and default were held proved, the claim was treated as within limitation, and the application was admitted, triggering insolvency resolution, moratorium, and appointment of an interim resolution professional.

---

---

Issues: Whether the financial creditor established existence of financial debt and default and whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was within limitation.

Analysis: The application was supported by the loan documents, revisions of credit facilities, assignment deed, acknowledgment of liability, and the corporate debtor's own conduct including revival letters and a proposal for one-time settlement. The record also showed that the loan had been classified as non-performing asset and that there had been continuing correspondence acknowledging the liability. On this material, the Bench found that the debt and default were proved and that the claim was within the period of limitation.

Conclusion: The application under section 7 was admitted.

Final Conclusion: Insolvency resolution proceedings were initiated against the corporate debtor and moratorium was ordered, with appointment of an interim resolution professional.

Ratio Decidendi: Where the record establishes a financial debt, a continuing acknowledgment of liability, and default within limitation, a section 7 insolvency application is liable to be admitted.

---