NCLT admits insolvency petition against SBCC Infra based on documentary evidence of ₹5.14 crore unpaid railway construction dues. No pre-existing dispute was found, satisfying threshold requirements under IBC.
NCLT Admits ₹5.14 Crore Insolvency Plea Against SBCC Infra
The National Company Law Tribunal (NCLT) has admitted an insolvency petition against SBCC Infra for a defaulted financial debt of ₹5.14 crore arising from unpaid railway construction dues. The tribunal found sufficient documentary evidence establishing the debt and default, with no credible pre-existing dispute raised by the corporate debtor.
In its order, the NCLT relied on contractual documents, invoices, and repayment records to confirm the existence and amount of financial debt. The absence of any concurrent arbitration or judicial proceedings challenging the claim at the time of filing negated the applicability of Section 8(2) of the IBC, which bars admission if a pre-existing dispute is demonstrated. The statutory minimum default threshold of ₹1 crore was also met.
This decision reaffirms the NCLT’s strict evidentiary standards in admitting petitions under Section 7 of the Insolvency and Bankruptcy Code, 2016. Legal practitioners must ensure that financial creditors compile complete documentary trails, including records from information utilities like NeSL, to substantiate claims and forestall dismissal on dispute grounds.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 7
- Insolvency and Bankruptcy Code, 2016, Section 8(2)
