Section 7 maintainability under IBC upheld where independent documents proved debt and default despite an unstamped loan agreement.

A Section 7 petition under the Insolvency and Bankruptcy Code, 2016 does not become non-maintainable merely because the Term Loan Agreement is alleged to be inadequately stamped. The tribunal found that the financial creditor had produced independent supporting material, including the demand promissory note, security documents, deposit of title deeds, charge registration certificate, bank statements, and related records, which together proved the financial debt and default. Even if the loan agreement were excluded, those contemporaneous documents were sufficient to establish maintainability. The objection based on non-registration or insufficient stamping was therefore rejected, and the Section 7 application was treated as complete.

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Issues: Whether a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016 was not maintainable because the loan transaction was founded on an inadequately stamped Term Loan Agreement, and whether the existence of debt and default stood proved notwithstanding that document.

Analysis: The challenge was confined to the alleged inadmissibility of the Term Loan Agreement. The record showed that the financial creditor had also produced the demand promissory note, security documents, letter evidencing deposit of title deeds, certificate of registration of charge, bank statements, and other supporting material. The finding was that even if the Term Loan Agreement were ignored for want of proper stamping, the remaining documents independently established the financial debt and the corporate debtor's default. The application under Section 7 was therefore held to be complete and the objection based on non-registration or insufficiency of stamping was rejected.

Conclusion: The petition under Section 7 was maintainable, and the objections raised by the appellant were rejected.

Ratio Decidendi: An application under Section 7 of the Insolvency and Bankruptcy Code, 2016 does not fail merely because one loan document is allegedly inadmissible, where other contemporaneous documents and account records independently prove financial debt and default.

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