In a dispute over steel supply, the NCLT has admitted a claim for Corporate Insolvency Resolution Process amounting to ₹2.35 crore based on established operational debt.
NCLT Accepts CIRP Application for Unpaid Operational Debt of ₹2.35 Crore
The National Company Law Tribunal (NCLT) has admitted a Corporate Insolvency Resolution Process (CIRP) application concerning an unpaid operational debt of ₹2.35 crores related to a steel supply dispute. The Tribunal determined that the existence of supporting invoices, Tax Deducted at Source (TDS) deductions, part-payments, and cheques established sufficient evidence of operational debt.
This ruling accentuates the importance of having clear documentation in operational debt cases, as the NCLT is guided by the evidence presented to support claims. Documents demonstrating ongoing transactions and payments played a crucial role in the decision to admit the CIRP.
Practitioners should advise clients on the necessity of meticulous record-keeping and the need to present compelling evidence thereof in operational debt disputes to enhance the potency of claim submissions in insolvency proceedings.
Citations
- NCLT Order (2026) NCLT
