Section 7 insolvency admission turns on proof of financial debt and default, with objections not defeating statutory satisfaction.

A Section 7 application was maintainable where the record showed disbursal of financial assistance, existence of a financial debt and default, and classification of the corporate debtor's account as non-performing. The objections in reply did not displace the statutory satisfaction required for admission. Once default was established and the petition was otherwise complete, admission followed, triggering commencement of the corporate insolvency resolution process, moratorium, and appointment of an interim resolution professional.

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Issues: Whether the petition under Section 7 was maintainable and liable to be admitted on proof of financial debt and default.

Analysis: The application disclosed disbursal of financial assistance to the corporate debtor and the materials on record established the existence of a financial debt and default. The corporate debtor's account had been classified as non-performing, and the objections raised in reply did not displace the statutory satisfaction required for admission of a financial creditor's application. Once default was shown and the petition was otherwise in order, the application was required to be admitted, followed by commencement of the corporate insolvency resolution process and moratorium.

Conclusion: The petition was maintainable and was admitted in favour of the petitioner, with moratorium and appointment of an interim resolution professional.

Ratio Decidendi: On proof of a financial debt and default, a Section 7 application by a financial creditor must be admitted if otherwise complete, and the existence of disputed objections does not prevent admission once the adjudicating authority is satisfied that default has occurred.

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