Pre-25 March 2020 default and proved debt led to admission of a complete insolvency application.

An application under the Insolvency and Bankruptcy Code was treated as maintainable because debt and default were established from the admitted correspondence and record, and the corporate debtor did not effectively dispute the claim. The statutory bar under section 10A was held inapplicable because the default date was 01.12.2019, which was before 25.03.2020. The petition was found complete, the proposed insolvency professional was accepted as Interim Resolution Professional, and corporate insolvency resolution process consequences were stated to follow.

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Issues: Whether the application under sections 8 and 9 of the Insolvency and Bankruptcy Code, 2016 was maintainable and liable to be admitted, and whether section 10A barred the proceeding in view of the date of default.

Analysis: The debt and default were found to be established on the admitted correspondence and the record, and the corporate debtor did not effectively dispute the claim. The default occurred on 01.12.2019, which was prior to 25.03.2020, so the statutory bar under section 10A did not apply. The petition was also found to be complete in all respects, and the proposed insolvency professional was accepted for appointment as Interim Resolution Professional.

Conclusion: The application was held admissible and the corporate insolvency resolution process was ordered to commence against the corporate debtor.

Final Conclusion: The petition succeeded, CIRP was triggered, and moratorium-related consequences followed in accordance with the Insolvency and Bankruptcy Code, 2016.

Ratio Decidendi: Section 10A does not bar a CIRP application where the default occurred before 25.03.2020, and once debt and default are established, an otherwise complete section 9 application is liable to be admitted.

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