9911796707
TMI Blog2022 (3) TMI 699X X X X Extracts X X X X X X X X Extracts X X X X ..... see ordinarily resides or carries on business or personally works for gain. The statute provides a particular manner of service of notice. Demand Notice is to be served at house or building in which the addressee ordinarily resides. In the present case, proviso to Rule 3(g) was not resorted to since the Notice dated 07.10.2020 was sent and received on 13.10.2020. The Adjudicating Authority in impugned judgment after considering the submissions has come to the conclusion that notice served in Form B at the address of the Appellant is valid service. The Adjudicating Authority also came to the conclusion that service of Demand Notice is not requirement of personal service. Order 5 Rule 24 of the Civil Procedure Code is provision for issuance and service of summons. Said provision is not relevant in so far as service of Demand Notice is contemplated as per 2019 Rule 3(g) read with Rule 7 - Demand Notice which was dated 07.10.2020 was duly served on the Appellant as per Rule 3(g) read with Rule 7 of 2019 Rules. Service of Notice of Demand has been effected in accordance of procedure prescribed in 2019 Rules. There are no infirmity in the order of the Adjudicating Authority by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice was sent and accepted on the residential address of the Appellant. (iv) A Demand Notice dated 07.10.2020 was sent by the Union Bank of India at the residential address of the Appellant by India Post which was received by the nephew of the Appellant Mr. Karthik Wadhawan on 13.10.2020. (v) After service of the notice, Application under Section 95 Sub-section (1) was filed by the Union Bank of India against the Appellant on 01.12.2020 for total debt of INR ₹ 3,958,30,48,96.71/- as on 31.08.2020. (vi) In the application notice was issued by the Adjudicating Authority which was served on the Appellant through his Advocate on 19.01.2021. (vi) When the Application under Section 95 came for consideration before the Adjudicating Authority on 07.12.2021, a submission was raised before the Adjudicating Authority that Demand Notice issued by the Bank having not been served on the Appellant Application need not be entertained. (vii) The Applicant Bank, who is Respondent before us, contended that Demand Notice under Rule 7 of the Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t is submitted that 2019 Rules does not require any personal service on the Appellant. Learned counsel for the Respondent submits that provisions of Order 5 Rule 24 of the Civil Procedure Code are not attracted since it is for service of summons and 2019 Rules provides for mode of service which was duly followed by the Bank in serving the Demand Notice. It is submitted that when statute provides for particular mode of service of notice general rule regarding service are not to be adhered to. 5. We have considered submissions of learned counsel for the parties and perused the record. 6. The Company Petition filed by the Bank against the Appellant Personal Guarantor is under Section 95 of the Code Rule has been framed namely, The Insolvency and Bankruptcy (Application to Adjudicating Authority for Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Rules, 2019. Rule 3 (g) defines service in following manner: (g) serve means sending any communication by any means, including registered post, speed post, courier or electronic form, which is capable of producing or generating an acknowledgement of receipt of such communication: Provided that wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3th October, 2020 is annexed as Exhibit B . 10. Fourteen days after service of Demand Notice, Application under Section 95 was filed on 01.12.2021. Rule 3(g) of the 2019 Rules provides mode and manner of sending any communication. As per Rule 3(g) serve means sending any communication by any means, including registered post, speed post, courier or electronic form. The proviso of 3(g) contemplate the situation where a document cannot be served in any of the modes, it shall be affixed at the outer door or some other conspicuous part of the house or building in which the addressee ordinarily resides or carries on business or personally works for gain. The statute provides a particular manner of service of notice. Demand Notice is to be served at house or building in which the addressee ordinarily resides. In the present case, proviso to Rule 3(g) was not resorted to since the Notice dated 07.10.2020 was sent and received on 13.10.2020. The Adjudicating Authority in impugned judgment after considering the submissions has come to the conclusion that notice served in Form B at the address of the Appellant is valid service. The Adjudicating Authority also came to the conclusion th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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