The National Company Law Tribunal Bench of Shri Mahendra Khandelwal (Judicial Member) and Shri Atul Chaturvedi (Technical Member) the absence of a formal loan agreement does not defeat the existence of a financial debt. Documentary evidence such as tax filings (Form 26AS), TDS deductions, ledger entries, financial statements, and written acknowledgments are sufficient to establish a Financial Debt under Section 5(8) of the Insolvency & Bankruptcy Code, 2016.
Background Facts:
The Financial Creditor disbursed an unsecured loan of ₹ 1.5 crores to the Corporate Debtor on 22.03.2016. The amount was advanced without any security and was repayable on demand. The Corporate Debtor acknowledged the debt through balance…
