https://www.taxtmi.com/caselaws?id=760234 NCLAT upheld the Adjudicating Authority's decision to admit a Section 7 application for CIRP initiation. The tribunal held that a written financial contract is not mandatory to prove financial debt, as established in Agarwal Polysacks Ltd. precedent. Evidence from ledger accounts, balance confirmation statements, and partial repayments sufficiently demonstrated debt existence and acknowledgment. The corporate debtor's MoU defense failed as the financial creditor was not a party to it. Since debt exceeded the threshold limit and default was proven, all Section 7 prerequisites were satisfied. Appeal dismissed. en-us Tue, 15 Oct 2024 00:00:00 +0530 Thu, 17 Oct 2024 13:09:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=760234 NCLAT upheld the Adjudicating Authority's decision to admit a Section 7 application for CIRP initiation. The tribunal held that a written financial contract is not mandatory to prove financial debt, as established in Agarwal Polysacks Ltd. precedent. Evidence from ledger accounts, balance confirmation statements, and partial repayments sufficiently demonstrated debt existence and acknowledgment. The corporate debtor's MoU defense failed as the financial creditor was not a party to it. Since debt exceeded the threshold limit and default was proven, all Section 7 prerequisites were satisfied. Appeal dismissed. Case-Laws IBC Tue, 15 Oct 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=760234