Financial Debt Valid Even Without Written Loan Agreement: NCLT Delhi

Fashion Suitings Private Limited Vs Shriya Overseas Private Limited (NCLT Delhi) Conclusion: Presence of a financial debt was not negated by the lack of a formal loan arrangement as supporting documentation such as tax filings (Form 26AS), TDS deductions, ledger entries, financial statements, and written acknowledgments were adequate and information in the file amply demonstrated the existence of financial debt and the Corporate Debtor’s default on it. Held: The Corporate Debtor received an unsecured loan of ₹1.5 crores from the Financial Creditor. The sum was paid back upon demand and...