Default and complete Section 7 documentation justify admission of insolvency proceedings and appointment of an interim resolution professional.

Proof of default and compliance with the prescribed Section 7 documentation are treated as the key requirements for admission of a financial creditor's insolvency application. The material cited included account statements, supporting certificates, a recall notice, NPA classification, and SARFAESI notice, together with the required forms and the proposed interim resolution professional's declaration that no disciplinary proceedings were pending. Where these conditions are satisfied, Section 7(5)(a) is met and the corporate insolvency resolution process may be admitted, with moratorium and appointment of an interim resolution professional following as statutory consequences.

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Issues: Whether a default had occurred and the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was complete so as to warrant admission of the corporate insolvency resolution process.

Analysis: The financial creditor produced account statements and supporting certificates showing overdue amounts and continuing non-payment from 30.11.2016 onwards. The record also showed recall notice, classification of the account as a non-performing asset, and notice under the SARFAESI Act, 2002. The application was supported by the prescribed forms and documents, and the proposed interim resolution professional furnished the requisite declaration that no disciplinary proceedings were pending. Once default was established and the application was found complete, the statutory conditions for admission under Section 7(5)(a) stood satisfied.

Conclusion: Default was proved and the application was complete; the request for initiation of corporate insolvency resolution process was admitted.

Final Conclusion: The corporate debtor was brought into insolvency resolution, moratorium was declared, and an interim resolution professional was appointed to take over the process.

Ratio Decidendi: On proof of default and satisfaction of the procedural requirements under Section 7, the Adjudicating Authority must admit the insolvency application if no disqualifying disciplinary proceedings are pending against the proposed resolution professional.

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