Explain the procedure to be followed by the Adjudicating Authority on receipt of an application by the financial creditor for initiation of corporate insolvency resolution process.

As per sections 7(4), 7(5) and 7(7) of the Insolvency and Bankruptcy Code, 2016 , following procedure is to be followed by Adjudicating Authority on receipt of an application by the financial creditor for initiation of Corporate Insolvency Resolution Process: The Adjudicating Authority shall, within fourteen days of the receipt of the application, ascertain the existence of a default from the records of an information utility or on the basis of other evidence furnished by the financial creditor. Where the Adjudicating Authority is satisfied that- (a) a default has occurred and the application is complete, and there is no disciplinary proceedings pending against the proposed resolution professional, it may, by order, admit such application; or (b) default has not occurred or the application is incomplete or any disciplinary proceeding is pending against the proposed resolution professional, it may, by order, reject such application: Adjudicating Authority shall, before rejecting the application, give a notice to the applicant to rectify the defect in his application within seven days of receipt of such notice from the Adjudicating Authority. The Adjudicating Authority shall communicate to the financial creditor and the corporate debtor, within seven days of admission or rejection of such application, as the case may be.