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TMI Blog2020 (3) TMI 1395X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court in Innoventive Industries Ltd. v. ICICI Bank [ 2017 (9) TMI 58 - SUPREME COURT ]. For the initiation of CIRP U/s 9 of the IBC by the Operational Creditor, the Operational Creditor is required to deliver the demand notice upon the Corporate Debtor U/s 8 of the IBC. The main object of the inception of provision of Section 8 is, This ensures that operational creditors, whose debt claims are usually smaller, are not able to put the corporate debtor into the insolvency resolution process prematurely or initiate the process for extraneous considerations. It may also facilitate informal negotiations between such creditors and the corporate debtor, which may result in a restructuring of the debt outside the formal proceedings , and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aya For the Respondent : None. ORDER AS PER: SH. ABNI RANJAN KUMAR SINHA, MEMBER (JUDICIAL) 1. The present petition is filed under Section 9 of Insolvency and Bankruptcy Code,2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rule,2016 by the Applicant/ operational creditor, i.e. Nitin Singh, Proprietor of Shri Shyam Printers for initiation of Corporate Insolvency Resolution Process against the Respondent/ Corporate Debtor Company Waves Bio-Tech Pvt. Ltd. . 2. The Applicant is a supplier of Printing and Packaging material. 3. The Respondent/Corporate Debtor is incorporated on 27.07.2001, bearing CIN No. U2423DL2010PTC111836. It is a private limited company and the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iv. Further stated that the Corporate debtor have raised objections vide its notice of dispute dated 25.06.2019 regarding the quality of material supplied by the Petitioner. The Corporate debtor further added in his notice of dispute that they have suffered losses for approximately ₹ 10,00,000/- due to poor quality of goods supplied by the Operational creditor. The Corporate Debtor had not raised any dispute prior to the issuance of the Demand notice. 5. We have heard the learned counsel appearing for Applicant/ Operational Creditor. 6. The present case has been filed on behalf of Operational Creditor against the Corporate Debtor U/s 9 of the I B Code and before filing the present petition, the Operational Creditor had sent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n utility, if any. 9. It is a settled principle of law that there is a difference between the procedure for initiation of CIRP by the Financial Creditors U/s 7 of the IBC and the Operational Creditors U/s 9 of the IBC. So far as the Financial Creditor is concerned, as per Section 7 of the IBC, there is no need to deliver the notice before the initiation of CIRP and that has been decided by the Hon ble Apex Court in Innoventive Industries Ltd. v. ICICI Bank, (2017)205 Comp Cas 57(SC) held: The scheme of Sec 7 stands in contrast with the scheme under Sec 8 where an operational creditor is, on the occurrence of a default, to first deliver a demand notice of the unpaid debt to the operational debtor in the manner provided in sec 8(1) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered view that under Rule 5 of the Insolvency Bankruptcy (Application to Adjudicating Authority) Rules, 2016, there are two modes for sending demand notice, one is, either at the registered office by hand, registered post or speed post with acknowledgement due, or second one, by electronic mail service to a whole time director or designated partner or key managerial personnel, if any, of the corporate debtor, and on the basis of the facts stated in the application, we find, the applicant had sent the demand notice through the registered post, which was returned as no such person found , so, Rule 5(2)(a) has not been complied with. As far as Rule 5(2) (b) is concerned, the applicant has sent the demand notice through electronic ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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