The Journal Entries not supported by any other additional evidence cannot be solely relied upon to prove that the amount claimed arises out of supply of goods and services to fall within the ambit of the definition of Operational Debt as defined under Section 5(21) of the IBC – G.L. Engineering Industries Pvt. Ltd. Vs. Supreme Engineering Ltd. – NCLAT New Delhi
NCLAT holds that the Journal Entries not supported by any other additional evidence cannot be solely relied upon to prove that the amount claimed arises out of supply of goods and services to fall within the ambit of the definition of Operational Debt as defined under Section 5(21) of the Code. Further we are inclined to observe that the dishonour of the two cheques is a subject matter of the NI Act, 1881 and recovery of those amounts under the NI Act, 1881 cannot be said to be paid towards the supply of goods and services, specifically in the light of the absence of any such Agreement or invoices to that effect. It holds that mere Admission of any liability would not construe an Operational Debt as envisaged under Section 5(21) of the Code.
