Section 7 insolvency admission follows proof of financial debt and default where the application is otherwise complete.

Where a Section 7 application under the Insolvency and Bankruptcy Code is complete and the record shows financial debt and default, the Adjudicating Authority must admit the petition and commence the Corporate Insolvency Resolution Process. The corporate debtor had availed financial facilities, the outstanding liability had become due, and the account was classified as a non-performing asset; it remained ex parte and produced no material to dispute debt or default. The application satisfied statutory requirements, no disciplinary proceedings were pending against the proposed resolution professional, and the moratorium was declared with appointment of the Interim Resolution Professional.

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Issues: Whether the application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was complete and whether the existence of financial debt and default was established so as to admit the petition and commence the Corporate Insolvency Resolution Process.

Analysis: The record showed that the corporate debtor had availed financial facilities from the financial creditor, the outstanding liability had become due, and the account was classified as non-performing asset. The corporate debtor remained ex parte and did not place any material to dispute the debt or default. The application complied with the statutory requirements, and no disciplinary proceedings were pending against the proposed resolution professional. The Tribunal also found no ground to defer admission on the facts placed before it.

Conclusion: The application under Section 7 was admitted, the Corporate Insolvency Resolution Process was commenced, moratorium under Section 14 was declared, and the proposed Interim Resolution Professional was appointed.

Ratio Decidendi: Once the existence of financial debt and default is established and the Section 7 application is otherwise complete, the Adjudicating Authority must admit the application and initiate the Corporate Insolvency Resolution Process.

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