Section 7 insolvency admission upheld where financial debt, default, limitation and section 10A bar were satisfied.

A financial creditor's section 7 application under the Insolvency and Bankruptcy Code was admitted on proof of financial debt and default. Loan sanction documents, restructuring agreements, revival letters and information utility records established the debt as duly authenticated, and the account was classified as non-performing asset on 31 March 2018. The petition filed on 24 July 2020 was treated as within limitation, the debt exceeded the statutory threshold, and no defence was filed by the corporate debtor. As the default arose before the COVID-19 period, section 10A did not bar the application, and the corporate insolvency resolution process was directed to commence.

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Issues: Whether the financial creditor's application under section 7 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted on proof of financial debt and default, and whether the claim was within limitation and not barred by section 10A of the Code.

Analysis: The application was supported by loan sanction documents, restructuring agreements, revival letters, and records from the information utility showing the debt as deemed authenticated. The account had been classified as non-performing asset on 31 March 2018, and the petition filed on 24 July 2020 was held to be within limitation. The default was found to be established, the debt exceeded the statutory threshold, and no defence had been filed by the corporate debtor. The default had arisen before the COVID-19 period, so section 10A did not apply.

Conclusion: The application under section 7 was admitted, and the corporate insolvency resolution process was directed to commence against the corporate debtor.

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