Financial debt and default proved on record led to admission of the section 7 insolvency petition and commencement of CIRP.

Financial debt and continuing default were found established on the record through sanction letters, restructuring documents, account statements, default notices, and the corporate debtor's own acknowledgments. On that basis, the section 7 requirements of the Insolvency and Bankruptcy Code, 2016 were satisfied, and the company petition was admitted. Corporate insolvency resolution process was directed to commence, an interim resolution professional was appointed, and moratorium followed.

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Issues: Whether the financial debt and default were proved so as to admit the company petition and initiate corporate insolvency resolution process.

Analysis: The financial creditor produced sanction letters, restructuring documents, account statements, default notices and other supporting records to establish the debt and the continuing default. The corporate debtor's own communications and disclosures acknowledged the repayment default and the subsistence of events of default. On that material, the Bench found that the requirements for admission under section 7 of the Insolvency and Bankruptcy Code, 2016 were satisfied.

Conclusion: The petition was admitted and corporate insolvency resolution process was ordered to be initiated against the corporate debtor, with appointment of an interim resolution professional and commencement of moratorium.

Ratio Decidendi: Where the existence of financial debt and default is established on the record, a section 7 application is liable to be admitted and CIRP must follow.

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