Application Under Section 75 of IBC Cannot Be Rejected Due to Non-Furnishing of NESL When Existence of Debt and Default by CD Is Established: NCLT

The National Company Law Tribunal (NCLT) has ruled that an application under Section 75 of the Insolvency and Bankruptcy Code (IBC) cannot be rejected solely due to the non-furnishing of the National E-Governance Services Ltd. (NESL) report when the existence of debt and default by the Corporate Debtor (CD) is established. The tribunal emphasized that the primary requirement is the demonstration of a debt and default, and procedural lapses should not hinder the initiation of insolvency proceedings. This decision aims to streamline the insolvency process and reduce technical barriers for creditors seeking resolution.