9911796707
TMI Blog2021 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... of Notice. Again one set of Demand Notice was duly served upon one of the Directors of the Corporate Debtor. The legislative intent of issuance of Demand Notice under Section 8(1) is not a mere formality but a mandatory provision. Only after service of notice under Section 8(1) and on completion of 10 days, if payment towards the demand is not made, an Operational Creditor gets right to apply under Section 9 and not before such date. Upon perusal of the record, it is apparent that the Demand Notice was duly served on the functional address as well as Director of the Corporate Debtor. Under Section 2(59) of the Companies Act, 2013 Director is included in to definition of Officer. Under Section 20 of the Act a document served on a Company or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n u/s 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'the Code') against the Corporate Debtor Manju J Homes India Limited, by Shubham Jain, one of the directors of the Corporate Debtor. 2. The Appellant has challenged the impugned order of admission primarily on two grounds (a) Demand Notice u/s 8 of the Code was not served on the Corporate Debtor; (b) Claim of the Applicant Operational Creditor was seriously disputed. 3. The Appellant submits that the I B Code is a complete Code in itself, overriding all the other Acts. The concept of deemed delivery cannot be applied by necessary implication to Demand Notice u/s Section 8 of the Code read with Section 9 and Rules framed thereunder. The Appellan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tice raising any dispute, hence this application, seeking to unfold the process of CIRP. 9. As per Part IV of Form 5, the applicant has stated that total debt due and payable is ₹ 84,47,147/- (Rupees Eighty-Four Lakhs Forty- Seven Thousand One Hundred and Forty- Seven only) which includes Principal amount of ₹ 66,03,856.78/-and interest of ₹ 18,43,290.22/- @18% p.a. till 20.06.2018. The applicant has mentioned that default occurred on 02.12.2016. 10. The Respondent did not appear though Section 8 notice and the present application were duly served on the Respondent and proof of service filed by the applicant. This Tribunal is constrained to proceed with the matter exparte against the Respondent as per order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is included in to definition of Officer. Under Section 20 of the Act a document served on a Company or on Officer thereof is service recognized. Going from Principles of Natural Justice, in terms of Section 424 of Companies Act read with above provision of Service of Notice on Director must be held to be good service. Therefore, in our opinion, the mandate u/s 8 of the Code was fulfilled, and the Adjudicating Authority has rightly admitted the application u/s 9 filed by the Operational Creditor for initiating Corporate Insolvency Resolution Process against the Corporate Debtor. 8. As is evident from paragraph 10 of the Impugned Order, despite service of Demand Notice u/s 8 of the Code and service of the application u/s 9 of the Code, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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