NCLT admitted SIDBI’s insolvency application against a media company based on NeSL’s deemed-authenticated default record showing ₹2.52 crore outstanding debt. The record under IBC Section 5(8) was held sufficient to establish financial debt.
NCLT Initiates CIRP Against Media Company Based on NeSL Default 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) on account of a default of ₹2.52 crore. The admission was based on the record from the National e-Governance Services Limited (NeSL), which under the Insolvency and Bankruptcy Code (IBC), provides deemed authentication of financial debt.
NCLT held that the NeSL record, issued under Regulation 5(2)(f) of the Information Utilities Regulations, 2017, constituted prima facie evidence of outstanding financial debt. The tribunal observed that such records, once authenticated electronically, satisfy the requirements of Section 5(8) of the IBC, which defines financial debt, and Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016.
"The NeSL record is presumptive proof of the debt, and unless rebutted by contrary evidence, can form the basis for admission of insolvency applications,"
the tribunal stated. The corporate debtor failed to demonstrate any dispute existing in good faith before the default. With CIRP initiated, a Resolution Professional will now assess the company’s assets and invite resolution plans.
For practitioners, this judgment reinforces reliance on NeSL records as stand-alone proof in financial creditor applications. Creditors are advised to ensure data submission to registered information utilities is timely and verified.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 5(8), Rule 6
