Section 7 insolvency admission requires proof of financial debt, contract and default; unsupported claims were rejected.

An application under Section 7 of the Insolvency and Bankruptcy Code requires proof of a due and payable financial debt, a financial contract, and default supported by material showing disbursement, tenure, interest and repayment terms. The record did not contain the required financial contract or documentary proof of the claimed debt, and the applicant failed to satisfy the application rules and creditor claim regulations. As the existence of financial debt and default was not established, the application was not admitted and was liable to be rejected.

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Issues: Whether the applicant established the existence of a financial debt, a financial contract, and default so as to warrant admission of an application under Section 7 of the Insolvency and Bankruptcy Code, 2016.

Analysis: For admission under Section 7, the applicant must show a debt that is due and payable, that the debt answers the description of a financial debt, and that default has occurred. The application was required to be supported by a financial contract and material showing the amount disbursed, the tenure of the debt, interest payable, and the repayment terms. The record did not contain such a financial contract, and the applicant was unable to produce documentary proof evidencing the claimed debt. In the absence of material satisfying the requirements of the governing application rules and creditor claim regulations, the debt and default were not established.

Conclusion: The application did not meet the statutory requirements for admission under Section 7 and was liable to be rejected.

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