NCLT has admitted an insolvency application against SBCC Infra for defaulting on ₹5.14 crore of railway construction dues. The tribunal found no pre-existing dispute, relying on documentary evidence to establish the debt and default.
NCLT Approves CIRP for SBCC Infra Over Unpaid Railway Liabilities
The National Company Law Tribunal (NCLT) has admitted a ₹5.14 crore insolvency petition against SBCC Infra, citing defaults in payment of railway construction dues. The adjudicating authority held that the claim was supported by conclusive documentary evidence, including invoices and payment demands, which established both financial debt and default under Section 5(8) and 4 of the Insolvency and Bankruptcy Code (IBC), 2016.
Citing McDonald’s India v. Hardcastle Mining, the tribunal reiterated that a pre-existing dispute must be genuine, recorded before the notice of default, and supported by a pending suit or arbitration. No such dispute was demonstrated by the corporate debtor, and the records from the National E-Governance Services Limited (NeSL) further corroborated the outstanding dues. As a result, the NCLT rejected the argument of disputable liability.
This decision reinforces the evidentiary importance of NeSL data and documentary trails in proving financial debt. For practitioners, it underscores the necessity for operational creditors to maintain contemporaneous records. The admission triggers a 180-day resolution timeline, with interim management now in the hands of the Resolution Professional.
Citations
- Insolvency and Bankruptcy Code, 2016
- McDonald’s India v. Hardcastle Mining