Financial debt and default established under IBC; Section 7 application admitted, with moratorium and IRP appointment following.

A Section 7 IBC application was found maintainable where loan and security documents, account statements, banker's book certificates and credit reports established financial debt and default above the statutory threshold. Acknowledgments of debt, balance confirmations and account records also showed the petition was filed within limitation, so it was not time-barred. On admission, the statutory consequences followed: moratorium was declared and the proposed Interim Resolution Professional was appointed to conduct the CIRP.

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Issues: (i) Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and discloses a financial debt and default warranting admission. (ii) Whether the petition was within limitation. (iii) What consequential orders were required on admission, including moratorium and appointment of an Interim Resolution Professional.

Issue (i): Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and discloses a financial debt and default warranting admission.

Analysis: The application was supported by loan and security documents, statements of account, banker's book certificates, and credit information reports. The record showed that the corporate debtor availed consortium credit facilities, created security over assets, and committed default in repayment. The financial creditor's claim was therefore supported by documentary evidence establishing debt and default above the statutory threshold.

Conclusion: The application was held to be complete and the existence of debt and default was established; admission of the petition was justified.

Issue (ii): Whether the petition was within limitation.

Analysis: The Tribunal relied upon acknowledgments of debt, balance confirmation letters, and the dates of default shown in the account records. These materials showed that the application was filed within the permissible period and that the claim was not time-barred.

Conclusion: The petition was held to be within limitation.

Issue (iii): What consequential orders were required on admission, including moratorium and appointment of an Interim Resolution Professional.

Analysis: Once the requirements for admission under Section 7 were satisfied, the statutory consequences under the Insolvency and Bankruptcy Code, 2016 followed. The order required declaration of moratorium and appointment of the proposed Interim Resolution Professional for conduct of the Corporate Insolvency Resolution Process.

Conclusion: Moratorium was and the proposed Interim Resolution Professional was appointed.

Final Conclusion: The corporate insolvency resolution process was triggered against the corporate debtor, with statutory moratorium in force and an Interim Resolution Professional appointed to take charge of the process.

Ratio Decidendi: Where the financial creditor produces complete loan, security, account and acknowledgment records showing a subsisting financial debt, default, and filing within limitation, a Section 7 application must be admitted and the statutory consequences under the Insolvency and Bankruptcy Code, 2016 follow.

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