By S&S Co. Advocates & Solicitors · Published 2 September 2026 · Informational content, not legal advice
About this article: A general explainer prepared by S&S Co. Advocates & Solicitors on a recurring type of dispute. It does not report a specific judgment or order, names no parties and gives no case citation, so it should not be cited as authority. Law and practice change; please verify against the current statute and primary sources before relying on it.
On an application by a financial creditor under Section 7 of the Insolvency and Bankruptcy Code, 2016, the adjudicating authority must be satisfied that a default has occurred, that the application is complete and that there is no disciplinary proceeding pending against the proposed resolution professional. The Supreme Court, beginning with Innoventive Industries Ltd. v. ICICI Bank (2017), has treated the inquiry as confined to the existence of a financial debt and a default, without deciding disputed questions that belong to a civil court. Later decisions have also recognised that admission is not wholly automatic.
Delay in listing a case, which usually reflects the tribunal's workload, does not by itself give a corporate debtor an opportunity to widen its defences. Parties are expected to put their case in their pleadings, and fresh material introduced much later may not be accepted.
A settlement can be pursued at any stage. After admission, withdrawal is possible under Section 12A, with the approval of 90 per cent of the voting share of the committee of creditors. A settlement proposal that has not been concluded is not usually a ground to resist admission.