In Brief
SREI Equipment Finance Limited sought to initiate insolvency proceedings against Rajeev Anand under section 7 of the Insolvency and Bankruptcy Code, 2016. A loan originally given in 2008 was restructured in 2016 into two facilities totaling Rs.38.39 crores. After the first application was withdrawn, a fresh application claimed Rs.21.41 crores remained outstanding. The NCLT admitted the application, relying on the corporate debtor's own counter affidavit from earlier proceedings, which clearly admitted the debt. The NCLAT reversed this, claiming documents were previously rejected and no evidence supported the claim. The Supreme Court held the NCLAT's reasoning was flawed: the corporate debtor's counter affidavit was an admission, not an inadmissible document, and supplementary affidavits with transaction evidence supported the outstanding amount. The Court restored the NCLT's order and allowed the appeal.
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