NCLT admitted an insolvency application due to default of ₹3.43 crore, holding that the corporate debtor failed to disprove baseline eligibility of 540 homebuyers.
The National Company Law Tribunal (NCLT) has admitted an insolvency petition filed under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, arising from a default of ₹3.43 crore by a real estate developer. The adjudicating authority upheld the petition as maintainable, noting that homebuyers qualified as financial creditors and met the requisite threshold of 540 units.
The corporate debtor challenged the baseline number of homebuyers, claiming discrepancies in unit count. However, the NCLT observed that the CD failed to rebut the prima facie evidence submitted, including allotment letters and payment records. Under Rule 3(2)(a) of IBC (Admission of Application), the operational creditor need only demonstrate existence of a default and that financial debt is owed.
The ruling reinforces the evidentiary burden on corporate debtors to disprove thresholds when contesting NCLT admission. For practitioners, this underscores the importance of documenting baseline eligibility, especially in real estate insolvency cases involving group petitions by homebuyers.
Citations
- Insolvency and Bankruptcy Code, 2016, Section 7
