The National Company Law Tribunal admitted an insolvency application against SBCC Infra, finding no pre-existing dispute over unpaid railway construction dues exceeding the statutory threshold. Documentary evidence confirmed the debt's validity.
NCLT Admits Insolvency Plea Over Unpaid Railway Dues
The National Company Law Tribunal (NCLT) has admitted a ₹5.14 crore insolvency application under the Insolvency and Bankruptcy Code (IBC) against SBCC Infra, concluding that unpaid railway construction dues constituted a legitimate operational debt with no pre-existing dispute. The admission triggers the commencement of the Corporate Insolvency Resolution Process (CIRP).
The financial creditor, a railway PSU, submitted invoices, work completion certificates, and demand notices as documentary proof. The NCLT found these sufficient to establish a 'debt' and 'default' under Sections 5(8) and 5(14) of the IBC. The corporate debtor’s claim of a pending arbitration was rejected for lack of a prior admitted dispute.
The ruling reaffirms the NCLT’s strict stance on procedural thresholds for disputing debts under Section 8. For practitioners, this underscores the necessity of producing concrete evidence—such as mutual correspondence acknowledging the dispute—before the insolvency petition is filed. Mere assertions of arbitration are insufficient post-admission.
Citations
- Insolvency and Bankruptcy Code, 2016, Sections 5(8), 5(14), 8
