Financial debt and limitation proved under insolvency law, so the corporate insolvency process was admitted.

A Section 7 application under the Insolvency and Bankruptcy Code was found complete and maintainable because financial debt, default, and limitation were supported by loan documents, account statements, balance-sheet disclosures, and other record material. The Tribunal accepted the default date as 29-6-2012, treated the petition as within limitation in light of the last payment and surrounding evidence, and held that pending SARFAESI or DRT proceedings did not bar insolvency proceedings. The petition was admitted, the corporate debtor was held in default of a financial debt, and corporate insolvency resolution process was directed to commence with moratorium and appointment of an interim resolution professional.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and maintainable on proof of financial debt, default, and limitation, warranting admission of the petition and commencement of corporate insolvency resolution process.

Analysis: The application was supported by loan and security documents, sanction letters, statements of account, balance-sheet disclosures, CIBIL report, and a banker's certificate. The record showed disbursement of financial facilities, registration of charges, and a continuing liability reflected in the corporate debtor's financial statements. The Tribunal accepted the date of default as 29-6-2012, found that the petition was within limitation in view of the last payment and the material on record, and held that the pendency of SARFAESI or DRT proceedings did not bar invocation of the insolvency remedy. The Tribunal also found the petition procedurally complete for admission.

Conclusion: The section 7 application was admitted, the corporate debtor was held to be in default of a financial debt, and corporate insolvency resolution process was directed to commence with moratorium and appointment of an interim resolution professional.

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