Mere Recording Of Transaction As 'Inter-Corporate Deposit' In Balance Sheets Insufficient To Prove Financial Debt : NCLT Principal Bench

The National Company Law Tribunal (NCLT) Delhi ruled that merely recording an inter-corporate deposit (ICD) transaction in balance sheets does not automatically qualify as evidence of financial debt under the Insolvency and Bankruptcy Code (IBC). This decision clarifies that the presence of ICDs in financial statements alone is insufficient for triggering insolvency proceedings. Instead, tangible evidence and a clear demonstration of financial transactions and obligations are necessary. The ruling highlights the need for concrete proof of debt to establish claims in insolvency cases and emphasizes the importance of comprehensive financial documentation.