https://www.taxtmi.com/caselaws?id=789152 A Section 7 insolvency application remains maintainable once default is established, and it cannot be resisted merely by describing the proceeding as a debt recovery device. Settlement discussions do not, by themselves, bar admission of the application, especially after constitution of the Committee of Creditors, because any settlement then must be placed before that body in accordance with law. The alleged non-functioning of the corporate debtor is also insufficient to prevent commencement of resolution proceedings against a defaulting debtor. The admission challenge therefore failed, while the appellant was left free to pursue any lawful settlement before the creditor and the Committee of Creditors. en-us Fri, 28 Nov 2025 00:00:00 +0530 Sat, 04 Apr 2026 08:53:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789152 A Section 7 insolvency application remains maintainable once default is established, and it cannot be resisted merely by describing the proceeding as a debt recovery device. Settlement discussions do not, by themselves, bar admission of the application, especially after constitution of the Committee of Creditors, because any settlement then must be placed before that body in accordance with law. The alleged non-functioning of the corporate debtor is also insufficient to prevent commencement of resolution proceedings against a defaulting debtor. The admission challenge therefore failed, while the appellant was left free to pursue any lawful settlement before the creditor and the Committee of Creditors. Case-Laws IBC Fri, 28 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789152