Application U/S 7 Of IBC Can Be Admitted In Absence Of NeSL Certificate If Loan Disbursal & Default Are Proved By Other Documents: NCLT Mumbai

The National Company Law Tribunal (NCLT) Mumbai bench has held that an application under Section 7 of the Insolvency and Bankruptcy Code (IBC) for initiating insolvency proceedings can be admitted even in the absence of a National E-Governance Services Ltd (NESL) certificate. The tribunal clarified that as long as the disbursal of the loan amount and the occurrence of default can be proven through other reliable and relevant documents, the application is admissible. This ruling provides flexibility in demonstrating financial debt and default, acknowledging that other credible evidence can suffice if a NESL certificate is unavailable, thereby streamlining the process for financial creditors.