Written Agreement Not Mandatory To Prove Financial Debt When Other Materials On Record are Available: NCLAT

The National Company Law Appellate Tribunal (NCLAT) has ruled that a written agreement is not mandatory to prove a financial debt, provided other materials on record substantiate the claim. This ruling came in a case where the petitioner had submitted evidence such as bank records and financial statements to prove the existence of a debt, even though no formal written contract was available. The decision emphasizes that in insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), substantial evidence can be sufficient to establish the nature of a debt, even in the absence of a formal written agreement.