Section 9 Application Is Not Maintainable In Absence Of Strict Proof Of Debt And Default: NCLT Mumbai

The National Company Law Tribunal, Mumbai Bench, ruled on an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Mittal Polymers against Suvarna Additives Limited. The tribunal found the application not maintainable due to insufficient proof of debt and default. Mittal Polymers alleged a default of Rs. 2,33,10,961 based on unpaid invoices from 2015 to 2019. However, the tribunal noted that only a bank statement and a demand notice were submitted, lacking supporting documents like ledgers or financial statements. Citing precedent, the tribunal emphasized that initiating corporate insolvency requires strict proof of debt and default. As no invoices or acknowledgment of debt were provided, the application for CIRP initiation was rejected.