IBC default proven on documentary record, leading to admission of the section 7 application and commencement of CIRP.

Default under section 7 of the IBC was found to be established on the basis of lending documents, correspondence, demand notices and evidence of non-payment, satisfying the conditions for admission of the financial creditor's application. The record was treated as sufficient to prove disbursement of credit facilities and repayment default by the corporate debtor, and the application was admitted. As a consequence, the corporate insolvency resolution process was initiated, moratorium under section 14 was declared, public announcement under section 15 followed, and an interim resolution professional was appointed under section 16.

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Issues: Whether the financial creditor established a default warranting admission of the application under section 7 of the Insolvency and Bankruptcy Code, 2016, and consequential initiation of the corporate insolvency resolution process with moratorium, public announcement, and appointment of an interim resolution professional.

Analysis: The application was supported by lending documents, correspondence, and demand notices showing disbursement of credit facilities and non-payment of the outstanding dues by the corporate debtor. The record was found sufficient to show default in repayment of the financial debt. On that basis, the requirements for admission of a section 7 application were satisfied. Consequentially, moratorium under section 14, public announcement under section 15, and appointment of an interim resolution professional under section 16 followed.

Conclusion: The application was admitted and the corporate insolvency resolution process was initiated against the corporate debtor. Moratorium was declared and an interim resolution professional was appointed.

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