In Brief
A suspended director of a corporate debtor (Kranthi Edifice Pvt. Ltd.) challenged the National Company Law Tribunal's admission of an insolvency application filed by Canara Bank under Section 7 of the Insolvency and Bankruptcy Code. The applicant argued the bank should have extended Bank Guarantees and that pending settlement efforts justified rejecting the application. The Supreme Court held that once a financial creditor proves the existence of a debt and default (non-payment when due), the NCLT must admit the application unless it is incomplete. The NCLT has no discretion to refuse admission on grounds of pending settlements or interim court orders. Default was established here through demand notice and the debtor's own acknowledgment. The appeal was dismissed.
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