Pendency of recovery proceedings does not bar insolvency admission where debt and default are prima facie established.

Pendency of a recovery certificate or proceedings before the Debt Recovery Tribunal does not, by itself, displace a prima facie finding of debt and default for purposes of corporate insolvency resolution. The Tribunal treated the appeal as one seeking only interim protection against the admission order and found no sufficient basis to stay the commencement of the insolvency process. Interim stay was therefore refused, and the application for such relief was rejected.

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Issues: Whether interim stay of the order admitting the corporate debtor into corporate insolvency resolution process was warranted pending the appeal.

Analysis: The appeal concerned only interim protection against the admission order. The material before the Tribunal did not persuade it that the recovery certificate or the pending proceedings before the Debt Recovery Tribunal, by themselves, displaced the prima facie finding of debt and default. The Tribunal also noted that pendency of recovery proceedings does not, in law, prevent initiation of corporate insolvency resolution process where debt and default are established.

Conclusion: Interim stay was refused and the application seeking such relief was rejected.

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