IBC | No Compulsion To Specify Names Of Creditors In Balance Sheet, General Entry Acknowledging Debt Sufficient To Initiate CIRP : Supreme Court

The Supreme Court ruled that there is no need to specify individual creditor names in a corporate debtor’s balance sheet to initiate a Corporate Insolvency Resolution Process (CIRP). A general entry acknowledging debt in the balance sheet suffices. The court dismissed the plea of a suspended director who argued that the lack of creditor-specific entries prevented CIRP. The decision aligned with earlier rulings that balance sheet entries can acknowledge debt, triggering CIRP under Section 7 of the Insolvency and Bankruptcy Code.