Financial debt and default established, leading to admission of the insolvency application and commencement of CIRP.

The Section 7 application was admitted because financial debt and default were established through loan records, repeated acknowledgments, and the corporate debtor's own admission of liability. The Tribunal found the debt above the statutory threshold, held the application complete and within limitation, and accepted jurisdiction. On that basis, it initiated the corporate insolvency resolution process, imposed moratorium, and appointed the proposed interim resolution professional.

---

---

Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was liable to be admitted for initiation of the corporate insolvency resolution process in view of the existence of financial debt, default, acknowledgment of liability, and completion of the application requirements.

Analysis: The record showed that the corporate debtor had availed loan facilities, had repeatedly acknowledged the debt in correspondence, and had also admitted liability in its reply. The debt exceeded the statutory threshold and default was established. The application was found to be complete, filed within limitation, and within the Tribunal's jurisdiction. The Tribunal therefore held that the ingredients for admission under Section 7 were satisfied. Consequent directions for moratorium and appointment of the proposed interim resolution professional were also issued.

Conclusion: The Section 7 application was admitted, CIRP was initiated, moratorium was imposed, and the proposed interim resolution professional was appointed.

---