Admitted financial debt and default justified initiation of corporate insolvency resolution process and moratorium under insolvency law.

An admitted financial debt and undisputed default satisfied the requirements for admission of a petition under section 7 of the Insolvency and Bankruptcy Code, 2016 read with the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. The corporate debtor did not dispute the loan transaction or default, and a qualified insolvency professional had filed written consent. On that basis, the application met the statutory threshold for commencement of corporate insolvency resolution process, and moratorium followed.

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Issues: Whether, on an admitted financial debt and default, the petition under section 7 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted and corporate insolvency resolution process initiated against the corporate debtor.

Analysis: The financial debt, the loan transaction, and the default were not disputed by the corporate debtor. The petition was filed under section 7 of the Insolvency and Bankruptcy Code, 2016 read with Rule 4 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. On the admitted default and the existence of a qualified insolvency professional with written consent, the requirements for admission were satisfied, warranting initiation of corporate insolvency resolution process and declaration of moratorium.

Conclusion: The petition was admitted and corporate insolvency resolution process was initiated against the corporate debtor.

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