The NCLAT held that the amount advanced by the Appellant qualifies as a financial debt u/s 5(8) of the IBC. The confirmation of accounts, TDS deduction, and other material on record established the debt and default. The Respondent's claim of forgery of confirmation of accounts was unsubstantiated. The Petition was not barred by limitation as the latest acknowledgment of debt was in FY 2020-21, extending the limitation period. The dismissal of the Section 7 Petition by the Adjudicating Authority was unsustainable. The NCLAT set aside the order and directed initiation of CIRP against the Corporate Debtor u/s 7.
The NCLAT held that the amount advanced by the Appellant qualifies as a financial debt u/s 5(8) of the IBC. The confirmation of accounts, TDS deduction, and other material on record established the debt and default. The Respondent's claim of forgery of confirmation of accounts was unsubstantiated. The Petition was not barred by limitation as the latest acknowledgment of debt was in FY 2020-21, extending the limitation period. The dismissal of the Section 7 Petition by the Adjudicating Authority was unsustainable. The NCLAT set aside the order and directed initiation of CIRP against the Corporate Debtor u/s 7.
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