NCLT holds RBI NPA Irregularity Cannot Defeat CIRP Once Default Is Proved

Union Bank sought CIRP against Heera Hospitality for unpaid loan facilities. The Corporate Debtor challenged the NPA classification and alleged non-compliance with the MSME Revival and Rehabilitation Framework. NCLT held that Section 7 requires determination of the existence of financial debt and default, and the authenticated NeSL record together with the loan documents independently established the default.