Application u/s 7 of IBC Admissible even in Absence of NeSL Certificate if Loan Disbursal &...

The National Company Law Tribunal (NCLT) has ruled that an insolvency application filed by a financial creditor under Section 7 of the IBC is admissible even in the absence of a certificate from the National E-Governance Services Ltd (NeSL). In a case involving Canara Bank, the tribunal held that while a NeSL certificate is a valuable piece of evidence, it is not the only way to prove the existence of a debt and a default. The NCLT allowed the bank's application based on other relevant documents, such as the loan agreements, bank statements showing the disbursal of the loan, and records demonstrating the default in repayment. This ruling ensures that a creditor's right to initiate insolvency is not defeated merely because the debt was not recorded on the NeSL portal, as long as the claim can be substantiated with other credible documentary evidence.