Section 7 insolvency admission upheld where bank records and debtor confirmation established debt, default, and parallel DRT proceedings posed no bar.

Debt and default under a Section 7 insolvency application were established through the credit disbursement record, NPA classification, demand and recall notices, the bank's statement of account, NeSL reporting, and the corporate debtor's balance confirmation. The objections based on alleged theft of records, discrepancies in the account statement, and claimed receivables were rejected for lack of reliable supporting material. Pendency of a DRT original application and any counterclaim did not bar admission of the insolvency petition, because insolvency is a distinct proceeding available to a financial creditor independently of parallel recovery litigation. The admission of the Section 7 application was therefore upheld.

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Issues: Whether the order admitting the Section 7 application was liable to be interfered with on the ground that debt and default were not proved, the account statements were unreliable, and the pending DRT proceedings and counterclaim barred the insolvency application.

Analysis: The record showed disbursement of credit facilities, classification of the account as NPA, issuance of demand and recall notices, and filing of the bank's statement of account reflecting outstanding dues. The Tribunal found that the statement of account produced pursuant to the earlier direction, together with the NeSL record and the balance confirmation issued by the corporate debtor, sufficiently established debt and default. The objections regarding theft of records, alleged discrepancies in the bank statement, and claimed receivables were not supported by reliable material. The pendency of an OA before the DRT and any counterclaim did not preclude consideration of a Section 7 application, since insolvency is a special proceeding available to a financial creditor independently of such parallel proceedings.

Conclusion: The admission of the Section 7 application was upheld and the challenge to the finding of debt and default failed.

Ratio Decidendi: A Section 7 application can be admitted where the record, including bank statements, default reporting and admissions by the debtor, establishes debt and default, and the pendency of civil or DRT proceedings does not bar insolvency proceedings.

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