NCLT admits insolvency petition against SBCC Infra based on unpaid railway construction dues exceeding statutory threshold; no pre-existing dispute found despite objections.
NCLT Admits Insolvency Petition Against SBCC Infra
The National Company Law Tribunal (NCLT) has admitted a ₹5.14 crore insolvency petition filed against SBCC Infra under Section 7 of the Insolvency and Bankruptcy Code, 2016. The admission was based on documentary evidence establishing defaulted liabilities related to railway construction contracts that exceeded the minimum threshold of ₹1 crore under the IBC.
The corporate debtor contested the petition, arguing the existence of a pre-existing dispute. However, the NCLT found the documentary trail—including invoices, payment demands, and default records maintained with NeSL—conclusive and insufficient to establish a triable dispute prior to the trigger of default. As per settled jurisprudence, a mere assertion of dispute does not bar admission unless supported by strong contemporaneous evidence.
This ruling reaffirms the NCLT’s strict approach towards documentary defaults in infrastructure and public-sector-related contracts. Legal practitioners must ensure clients maintain robust pre-default dispute resolution documentation, especially in government-linked projects where invoicing systems may not always align with contractual timelines.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 7
