NCLAT allows admission of CIRP Application as Debt established with record of NeSL and default

The National Company Law Appellate Tribunal (NCLAT) has allowed the admission of a Corporate Insolvency Resolution Process (CIRP) application, holding that the existence of a debt and a default was clearly established through the record of the National E-Governance Services Ltd (NeSL). NeSL is a government-authorized Information Utility that serves as a central repository for financial and debt information. The NCLAT observed that the record from NeSL, which confirmed the debt and the subsequent default by the corporate debtor, is strong and admissible evidence under the Insolvency and Bankruptcy Code (IBC). This judgment reinforces the importance of the NeSL database in the insolvency process. It streamlines the admission of CIRP applications by providing a reliable and undisputed record of debt, making it easier for creditors to prove their case and for the tribunals to make quicker decisions.