The Supreme Court reaffirmed that admission of a Section 7 insolvency application is mandatory once financial debt and default are established, and courts cannot examine the Corporate Debtor’s viability or settlement proposals rejected by the Committee of Creditors.

The Supreme Court expressed grave concern over the misuse of the Insolvency and Bankruptcy Code through systematic asset undervaluation and pre-planned resolution processes, warning against insolvency becoming a shield for legitimising financial fraud.

The Supreme Court held that insolvency proceedings cannot be transferred merely on speculative allegations against tribunal members, reaffirming judicial discipline and institutional independence.