Financial debt and default proved from admitted liability, loan disbursal, and persistent non-payment; section 7 insolvency admission followed.

Financial debt and default were established where the corporate debtor admitted liability, did not press its objections, and the record showed sanction and disbursal of loan and working capital facilities, repeated restructurings, continued non-payment, and classification of the account as non-performing. On those facts, the section 7 application was found complete and maintainable, and it was admitted. Corporate insolvency resolution process was ordered against the corporate debtor.

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Issues: Whether the section 7 application was complete and maintainable on proof of financial debt and default, so as to warrant admission and commencement of corporate insolvency resolution process.

Analysis: The Corporate Debtor admitted its liability and did not press its objections. The record showed sanction and disbursal of loan and working capital facilities, multiple restructurings, persistent non-payment, and classification of the account as non-performing. On these facts, the debt answered the description of a financial debt and the failure to repay constituted default. The application was treated as complete and fit for admission under the insolvency framework.

Conclusion: The section 7 application was admitted and corporate insolvency resolution process was ordered against the Corporate Debtor.

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