NCLT admitted SIDBI’s insolvency petition against a media company based on NeSL’s deemed-authenticated record showing ₹2.52 crore default. The tribunal found financial debt established under IBC.
NCLT Initiates CIRP Against Media Firm for ₹2.52 Crore Default
The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed by SIDBI against a media company, initiating the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code (IBC). The default of ₹2.52 crore was established through records from the National E-Governance Services Limited (NeSL), which were deemed authenticated under Regulation 3(1) of the Information Utility Regulations.
The tribunal held that the NeSL record constituted conclusive proof of the existence of financial debt, as per Section 5(8)(i) of the IBC. No further documentary proof was required from SIDBI, the financial creditor. The NCLT observed that the statutory framework gives primacy to authenticated financial information held by recognized information utilities, streamlining the admission process under IBC.
This decision reinforces the evidentiary value of NeSL records in insolvency proceedings and underscores the expedited nature of creditor claims where data is electronically verified. Practitioners should note that objections to such records must be substantiated with proof of fraud or manipulation, as mere denial is insufficient to rebut deemed authenticity.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 5(8)(i), Section 7
- Information Utilities Regulations, Regulation 3(1)
