Section 7 Insolvency admission confirmed on admitted default, with CIRP initiated, moratorium declared and IRP appointed.

The financial creditor established default through the loan documents, assignment of debt, recovery proceedings and the corporate debtor's balance sheet, and the debtor's counsel accepted that no reply was necessary because default stood admitted. On that material, the Adjudicating Authority found the section 7 admission requirements under the Insolvency and Bankruptcy Code, 2016 satisfied and held that default was proved. The proposed interim resolution professional was found eligible and appointed. The application was admitted, corporate insolvency resolution process was initiated, a moratorium under section 14 was declared, and consequential directions for public announcement and management handover were issued.

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Issues: Whether the financial creditor had established a default so as to warrant admission of the application under section 7 of the Insolvency and Bankruptcy Code, 2016 and initiation of corporate insolvency resolution process.

Analysis: The application was supported by the loan documents, assignment of debt, the recovery proceedings and the admitted default reflected in the corporate debtor's balance sheet. The corporate debtor's counsel also accepted that there was no need to file a reply as the default stood admitted. On this material, the Adjudicating Authority found that the requirements for admission under section 7 were satisfied and that the financial creditor had established the existence of default. The proposed interim resolution professional was found eligible and was appointed. Consequential directions were issued for public announcement, management handover, and operation of moratorium under section 14.

Conclusion: The application under section 7 was admitted and corporate insolvency resolution process was initiated against the corporate debtor, with appointment of the interim resolution professional and declaration of moratorium.

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