The NCLT admitted SIDBI's insolvency petition against a media company, relying on NeSL records that established a ₹2.52 crore financial default. The deemed authentication under IBC allowed initiation of CIRP without further proof of debt.
NCLT Admits SIDBI’s Insolvency Petition Based on NeSL Record
The National Company Law Tribunal (NCLT) has admitted an insolvency application filed by SIDBI against a media company, initiating the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The decision rests on records from the National e-Governance Services Ltd (NeSL), which established a defaulted financial debt of ₹2.52 crore, deemed authenticated under Section 5(7) of the IBC.
The tribunal held that NeSL’s information, being part of an information utility recognized under the IBC, constitutes primary evidence of financial debt. Citing Axis Bank Ltd. v. Satish Chandra Samanta, the NCLT affirmed that such records need no further corroboration for admission purposes. The respondent company failed to rebut the presumption of debt, leading to the order of CIRP commencement.
This ruling reinforces the evidentiary value of NeSL records in insolvency proceedings, streamlining debt verification and reducing procedural delays. For practitioners, it underscores the importance of timely contesting NeSL data before the tribunal, as defaults recorded therein carry significant legal weight.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 5(7)
