While a written contract cannot be treated as a pre- requisite to proving the existence of financial debt and while non-production of documents in respect of loans given by NBFC alone cannot preclude the Adjudicating Authority from admitting an Application under section 7 of the Code – Narendra Promoters & Fincon Pvt. Ltd. Vs. Caltron Info Trade Pvt. Ltd. – NCLT Kolkata Bench
The Adjudicating Authority holds that while a written contract cannot be treated as a pre- requisite to proving the existence of financial debt and while non-production of documents in respect of loans given by NBFC alone cannot preclude the Adjudicating Authority from admitting an Application under section 7 of the Code, the Adjudicating Authority must be satisfied that the Corporate Debtor is not being dragged into CIRP with mala fide for any purpose other than the resolution of the Insolvency. Further, the requirement for leading evidence suggests that the instant matter is out of scope of summary proceedings under the Insolvency and Bankruptcy Code, 2016, and will be better dealt with in a civil Court.