Director Communications Can't Replace Documentary Proof For Establishment Of Loan: NCLT Delhi
The National Company law Tribunal Delhi bench of Shri Manni Sankariah Shanmuga Sundaram And Shri Atul Chaturvedi Dismissed a section 7 petition for initiation of Corporate Insolvency Resolution process, holding that communications from the directors of the Corporate Debtor cannot override the lack of substantive documentary proof such as audited financials, books of accounts,...
The National Company law Tribunal Delhi bench of Shri Manni Sankariah Shanmuga Sundaram And Shri Atul Chaturvedi Dismissed a section 7 petition for initiation of Corporate Insolvency Resolution process, holding that communications from the directors of the Corporate Debtor cannot override the lack of substantive documentary proof such as audited financials, books of accounts, or banking records for establishment of loan.
The Financial creditor, Altitude Finvest Limited filed an application against Causis E-Mobility Private Limited, corporate debtor seeking initiation of Corporate Insolvency Resolution Process on the ground that the Corporate Debtor had committed a default in payment of 1,14,97,186/-
The financial creditor contended that the Corporate debtor had approached for loan amount of Rs. 55,00,000/- via a loan agreement.
However, after 10 days after the loan agreement was executed, the financial creditor received a communication from the director of corporate debtor who stated that the loan had been obtained without his approval and so requested for reversal of the transaction.
Thereafter, the financial creditor sent an email to the corporate debtor for repayment of the loan. However, the corporate debtor did not repay the loan amount.
The tribunal observed that the financial creditor primarily relied upon a loan agreement a series of communications between the Applicant and the Corporate Debtor. It remarked that even though the loan agreement and email correspondences may indicate that the parties had negotiated and agreed upon certain terms, such documentation does not suffice to establish disbursement of the loan.
Further it remarked that the Financial creditor did not submit any statement of account, bank transaction details, or entries from its own books of account to substantiate the alleged disbursal of Rs. 55,00,000/- to the Corporate Debtor.
Thus, the Tribunal in absence of any bank statement, financial statement, or independent documentary evidence of disbursement and default dismissed the petition.
Case Title: Altitude Finvest Limited v/s CAUSIS E-MOBILITY PRIVATE LIMITED
Case Number: COMPANY PETITION (IB) 811 (ND) 2024
Judgment Date: 11/08/2025
For the Applicant: Ms. Daisy Hannah, Advocate.