Section 7 insolvency application admitted after proof of debt, default, limitation, and jurisdiction for CIRP commencement.

An application under Section 7 of the Insolvency and Bankruptcy Code was found maintainable where financial records showed disbursement of credit, existence of debt, and default after the account turned non-performing. The Tribunal held that jurisdiction lay where the corporate debtor's registered office was situated, the claim was within limitation, and the proposed insolvency professional had given consent without disciplinary impediment. On these findings, the company petition was admitted, corporate insolvency resolution process commenced, and moratorium and related CIRP consequences followed.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was maintainable and whether the Corporate Insolvency Resolution Process should be admitted against the Corporate Debtor.

Analysis: The application was supported by financial records showing disbursement of credit facilities, the existence of debt, and default after the account was classified as non-performing asset. The Tribunal found that jurisdiction lay with it on the basis of the Corporate Debtor's registered office, that the claim was within limitation, and that the requirements for initiation of CIRP were satisfied. The proposed insolvency professional had also furnished consent and there was no noted disciplinary impediment.

Conclusion: The application was admitted and CIRP was initiated against the Corporate Debtor.

Final Conclusion: The financial creditor succeeded in establishing default and the statutory conditions for commencement of insolvency proceedings, resulting in admission of the company petition and invocation of moratorium and related CIRP consequences.

Ratio Decidendi: Once default and maintainability under Section 7 are established, and the claim is within limitation and jurisdiction lies, admission of the insolvency application follows and CIRP must commence.

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