The National Company Law Tribunal (NCLT) has held that a financial creditor’s insolvency application cannot be rejected merely because the Record of Default from an Information Utility (IU) was not filed along with the initial petition provided that the financial debt and default are otherwise established through admissible evidence.
The Financial Creditor submitted that it had advanced an Inter-Corporate Deposit (ICD) of ₹1 crore to the Corporate Debtor in three tranches carrying interest at 15% per annum. The Corporate Debtor acknowledged the debt through ICD receipts and later issued two cheques towards repayment.
However, both cheques were dishonoured with the endorsement Funds Insufficient, prompting the …