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.

Once default of the Corporate Debtor is finally adjudicated under Section 7 IBC, personal guarantors cannot reopen the issue to resist proceedings under Section 95 of the Code.

The NCLAT held that violation of deposit provisions under the Companies Act does not render an interest-bearing loan unenforceable or bar insolvency proceedings under Section 7 of the IBC.