The NCLT admitted a ₹2.47 crore insolvency petition, concluding that WhatsApp chats failed to prove a pre-existing dispute. The decision underscores the need for substantive evidence in insolvency matters.
NCLT Admits Insolvency Plea Amid WhatsApp Evidence
The National Company Law Tribunal (NCLT) has admitted a Corporate Insolvency Resolution Process (CIRP) application for ₹2.47 crores, primarily stating that the WhatsApp communications presented were inadequate to establish a legitimate pre-existing dispute. The Tribunal highlighted the absence of corroborative authority or documentary proof to support the claims made through these chats.
In the case examined, the applicant presented WhatsApp messages purportedly from the proprietor's son to argue that there were ongoing disputes related to the payment. However, the NCLT found these communications lacking in verifiable authority or official documentation which could substantiate the claims of dispute. The reliance on informal chats was deemed insufficient as no formal evidence was provided to back the assertions.
The NCLT emphasized the necessity for meaningful documentation in insolvency proceedings, particularly when disputing claims is at the forefront. This reinforces a critical standard of proof required under the Insolvency and Bankruptcy Code, which mandates that disputes must be demonstrably substantiated to stall the insolvency process.
This ruling serves as a vital reminder to legal practitioners about the evidentiary standards required in insolvency cases. Legal representatives must ensure they gather adequate, formal evidence when challenging insolvency petitions based on alleged disputes to avoid unnecessary proceedings.
Citations
- NCLT Order (2026) 5 NCLT 23
