Section 7 insolvency application admitted after proof of default, completeness, and limitation computed from the first unpaid instalment.

A Section 7 application under the Insolvency and Bankruptcy Code was found complete and supported by sanction letters, demand notice, NPA classification and evidence of non-payment. Default was treated as arising when the instalment first became due and remained unpaid, rather than from the later NPA date. Limitation ran from that default date under Article 137 of the Limitation Act, with the Supreme Court's limitation-extension period excluded, so the filing was within time. No disciplinary proceeding was shown against the proposed resolution professional, and the application was admitted with commencement of the corporate insolvency resolution process and moratorium.

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Issues: Whether the financial creditor's application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was complete, within limitation, and disclosed a default warranting admission and commencement of corporate insolvency resolution process.

Analysis: The application was supported by the sanction letters, the account classification as non-performing asset, the demand notice, and the material showing non-payment of the debt. The date of default was treated as the date when the instalment first became due and remained unpaid, not merely the date of NPA classification. For limitation, the three-year period under Article 137 of the Limitation Act, 1963 was computed from the date of default, and the period excluded by the Supreme Court's limitation-extension orders was applied, bringing the application within time. The application was also found complete and no disciplinary proceeding was shown against the proposed resolution professional.

Conclusion: The Section 7 application was maintainable and was admitted, with commencement of corporate insolvency resolution process and declaration of moratorium.

Ratio Decidendi: For a Section 7 application, admission depends on proof of default and completeness of the application, and limitation runs from the date the debt first became due and remained unpaid, subject to exclusion of the extended limitation period ordered by the Supreme Court.

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