Non-Stamped Document will not Render CIRP as Non-Maintainable when Material to Prove Default of Debt Exists: NCLAT [Read Order]
CIRP – NCLAT National Company Law Appellate Tribunal – TAXSCAN
CIRP – NCLAT National Company Law Appellate Tribunal – TAXSCAN
The New Delhi Bench of the National Company Law Appellate Tribunal (NCLAT) observed that non-stamping of document will not render Corporate Insolvency Resolution Process (CIRP) as non-maintainable when the material to prove default of debt exists.
The ground for the present appeal is that the inter corporate deposit of Rs.7 Crores is captured in an unstamped document with the title of “confirmation and undertaking” @ interest of 1% per month. Further, it is claimed that confirmation and undertaking dated 24.09.2015, being an inter corporate deposit agreement, is mandatorily required to be stamped.
It was claimed by the Appellant that such confirmation and undertaking cannot be relied upon as evidence under Section 34 and Article 5(h)(A)(iv) of the Maharashtra Stamp Act. And since this document could not have been relied upon by Adjudicating Authority, therefore, there is a dispute in the existence of a default. It was claimed that there exists no other document which would demonstrate the existence or the terms and conditions for a default.
The Appellant assailed the judgment of this Tribunal in Satra Properties (India) Limited vs. Vistra ITCL India Limited. In the Satra Properties, this Tribunal had observed that there is no need to get into the issue of stamp duty as it is irrelevant and uncalled for as there existed other documents which proved the existence of a debt and a default, which is not the case, in the present matter.
A Three Member Bench comprising Justice Ashok Bhushan, Chairperson, BarunMitra, Member (Technical) and Arun Baroka, Member (Technical) observed that “The plea of the Appellant, to claim that the unstamped agreement/instrument in question cannot be admitted into evidence under the provisions of the Maharashtra Stamp Act, as a defense, cannot render the corporate insolvency resolution process (“CIRP”) non-maintainable, when there exists other material on record to prove existence of default in payment of debt. On this count, we therefore, cannot find any fault in the orders of the Adjudicating Authority.”
“In the above-mentioned circumstances, non-stamping of document does not render the corporate insolvency resolution process (“CIRP”) application filed to be non-maintainable when there exists other material on record to prove existence of default in the payment of debt” the Tribunal noted.
To Read the full text of the Order CLICK HERE
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