Written Financial Contract is not A prerequisite for existence of Debt: NCLAT Delhi

Jaiprakash Agarwal Vs Alka Prakash Agarwal (NCLAT New Delhi) Summary: In Jaiprakash Agarwal Vs Alka Prakash Agarwal, the National Company Law Appellate Tribunal (NCLAT) in New Delhi affirmed that a written financial contract is not a prerequisite for the existence of a debt under the Insolvency and Bankruptcy Code (IBC). The appeal challenged an Adjudicating Authority (NCLT) order admitting a corporate debtor into CIRP based on an oral loan agreement. The appellant, the corporate debtor’s suspended director, argued that the debt, an unsecured loan of Rs. 70 lakhs, had been fully repa...