The NCLAT dismissed a claim of ₹18.85 crores against a corporate debtor due to lack of banking proof and absence of a valid memorandum of understanding (MoU) to establish financial debt.
NCLAT Dismisses Claim Against Corporate Debtor Due to Insufficient Evidence
The NCLAT has rejected a claim amounting to ₹18.85 crores against a corporate debtor, highlighting the absence of a verifiable banking trail or a finalized memorandum of understanding (MoU) to substantiate the existence of financial debt. This decision reinforces the necessity for claimants to maintain robust documentation when asserting claims.
The Tribunal indicated that without conclusive evidence of a financial relationship or agreement, such creditors cannot establish the foundation for their claims in insolvency proceedings. The ruling underscores the stringent proof required for claims in corporate insolvency resolutions governed by the Insolvency and Bankruptcy Code.
Legal practitioners should advise clients on the importance of maintaining comprehensive records and formal agreements to ensure enforceability of financial claims during insolvency proceedings, as lack of documentation could lead to dismissal of claims by the tribunal.
Citations
- NCLAT Order (2026) NCLAT
