Curable procedural defects do not defeat a section 7 insolvency claim once debt and default are established.

A section 7 insolvency application could not be rejected for defects in the supporting affidavit or related filing irregularities, because the notarization lapse was treated as a curable procedural defect and the code required an opportunity to rectify defects before rejection. The tribunal also found that debt and default were established from the admitted credit facilities, outstanding dues, and the corporate debtor's own admissions in its counter filings. Accordingly, the statutory requirements for admission were satisfied, the application was admitted, and insolvency resolution consequences, including interim moratorium, followed.

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Issues: (i) Whether the defect in the supporting affidavit and related filing irregularities in the section 7 application justified rejection of the petition. (ii) Whether the financial creditor had established existence of debt and default so as to admit the insolvency application.

Issue (i): Whether the defect in the supporting affidavit and related filing irregularities in the section 7 application justified rejection of the petition.

Analysis: The affidavit-related objection was treated as a procedural irregularity and a curable defect. Non-compliance with the notarization requirement under the tribunal rules was held not to override the substantive scheme of the insolvency code. The proviso to section 7(5) required opportunity to rectify defects before rejection, and the tribunal held that the application could not be dismissed on that ground alone.

Conclusion: The objection based on affidavit and filing defects was rejected; it did not warrant dismissal of the section 7 application.

Issue (ii): Whether the financial creditor had established existence of debt and default so as to admit the insolvency application.

Analysis: The tribunal found that the record established debt and default. It relied on the admitted sanction of credit facilities, the outstanding dues, and the corporate debtor's admissions in its counter and additional counter. On that basis, the statutory requirements for admission of the section 7 application were satisfied.

Conclusion: The financial creditor proved debt and default, and the insolvency application was admitted.

Final Conclusion: The insolvency resolution process was set in motion against the corporate debtor, the application was admitted, and interim moratorium consequences followed in terms of the code.

Ratio Decidendi: A section 7 insolvency application cannot be rejected for a curable procedural defect in the affidavit or supporting documents when the code requires an to rectify defects, and once debt and default are established, admission follows.

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