Section 7 insolvency admission upheld after debt, default, limitation, and statutory threshold were satisfied.

An application under section 7 of the Insolvency and Bankruptcy Code, 2016 was found complete, with default and debt established through loan documents, security documents, a demand notice under section 13(2) of the SARFAESI Act, 2002, and evidence of non-payment. The corporate debtor's one-time settlement offer was treated as an acknowledgment of liability, so the claim was held to be within limitation. As the default amount crossed the statutory threshold for admission, the application was admitted under section 7(5)(a) and moratorium under section 14 of the Code was ordered.

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Issues: Whether the application under section 7 of the Insolvency and Bankruptcy Code, 2016 was complete, whether default and debt were established, whether the claim was within limitation, and whether the corporate insolvency resolution process should be admitted.

Analysis: The application was supported by loan documents, security documents, a demand notice under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, and the record of non-payment. The corporate debtor's offer of one-time settlement was treated as an acknowledgment of liability for the purpose of limitation, and the petition was found to have been filed within time. The application in Form No. 1 was also found complete, and the default amount exceeded the threshold required for admission under the Code.

Conclusion: The application was admitted under section 7(5)(a) of the Insolvency and Bankruptcy Code, 2016, and moratorium was under section 14 of the Code.

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