NCLT admits insolvency application against SBCC Infra based on documentary evidence of unpaid railway construction dues exceeding the statutory threshold, rejecting claims of pre-existing dispute.
NCLT Admits ₹5.14 Crore Insolvency Plea Against SBCC Infra
The National Company Law Tribunal (NCLT) has admitted a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, initiating CIRP against SBCC Infra over a defaulted debt of ₹5.14 crore arising from unpaid railway construction dues. The corporate debtor contested the claim, alleging a pre-existing dispute, but the Tribunal held that the documentary evidence — including invoices, payment demands, and records from a financial information utility — substantiated the financial debt and undisputed default.
Applying established jurisprudence under Anuj Jain v. Axis Bank, (2020) 8 SCC 401, the NCLT emphasized that a pre-existing dispute must be factual, substantial, and predating the insolvency notice. It found no such evidence here, noting that the responses from SBCC Infra lacked supporting documents. The adjudicating authority also rejected reliance on future recovery prospects, stating they do not negate current default.
This decision reinforces the threshold standard for resisting admission under Section 7 and underscores the evidentiary burden on corporate debtors. Legal practitioners must ensure that claims of dispute are backed by contemporaneous records. The case also highlights the evidentiary weight of NeSL and other financial information utilities in establishing default.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 7
- Anuj Jain v. Axis Bank, (2020) 8 SCC 401
