Section 10 insolvency application admitted after compliance, debt default proof, and valid proposed resolution professional eligibility.

A corporate applicant's Section 10 application under the Insolvency and Bankruptcy Code, 2016 was found compliant where the special resolution, debt and default particulars, financial statements showing losses and liabilities, and the proposed resolution professional's consent and eligibility declaration were all on record. The Adjudicating Authority recorded that debt and default were established, the statutory requirements were satisfied, and no disqualification of the proposed professional was shown. On that basis, the application was admitted, Corporate Insolvency Resolution Process was initiated, an Interim Resolution Professional was appointed, and moratorium was declared.

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Issues: Whether the corporate applicant's application under Section 10 of the Insolvency and Bankruptcy Code, 2016 was complete and deserved admission for initiation of Corporate Insolvency Resolution Process, with appointment of an Interim Resolution Professional and declaration of moratorium.

Analysis: The application was supported by the requisite special resolution, particulars of debts and defaults, financial statements showing losses and liabilities exceeding assets, and the proposed resolution professional's written consent and declaration of eligibility. The Adjudicating Authority found that debt and default were established, that the application complied with the statutory requirements, and that no disqualification of the proposed professional was shown.

Conclusion: The application was admitted and Corporate Insolvency Resolution Process was initiated, with appointment of the named Interim Resolution Professional and declaration of moratorium.

Ratio Decidendi: Where a corporate applicant under Section 10 of the Insolvency and Bankruptcy Code, 2016 satisfies the statutory requirements and establishes debt and default, the Adjudicating Authority is to admit the application and commence Corporate Insolvency Resolution Process.

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