https://www.taxtmi.com/caselaws?id=447786 The NCLAT dismissed an appeal challenging the rejection of a Section 7 application under IBC. The Adjudicating Authority correctly found that the Facility Agreement was undated and unsigned by the respondent, constituting inadequate evidence of debt. The email sharing the agreement was merely a draft seeking comments. Although appellants claimed financial debt was disclosed in provisional balance sheets, the Authority noted that appellants had sold their shareholding through a Share Purchase Agreement for a lumpsum settlement of Rs.10.62 crore. The Authority properly concluded that financial creditors failed to prove crystallized debt and default beyond doubt, warranting dismissal of the Section 7 application. en-us Wed, 03 Jan 2024 00:00:00 +0530 Fri, 05 Jan 2024 08:45:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=447786 The NCLAT dismissed an appeal challenging the rejection of a Section 7 application under IBC. The Adjudicating Authority correctly found that the Facility Agreement was undated and unsigned by the respondent, constituting inadequate evidence of debt. The email sharing the agreement was merely a draft seeking comments. Although appellants claimed financial debt was disclosed in provisional balance sheets, the Authority noted that appellants had sold their shareholding through a Share Purchase Agreement for a lumpsum settlement of Rs.10.62 crore. The Authority properly concluded that financial creditors failed to prove crystallized debt and default beyond doubt, warranting dismissal of the Section 7 application. Case-Laws Insolvency and Bankruptcy Wed, 03 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=447786