The Appellate Tribunal upheld the dismissal of an application ...

Improper notice to Corporate Debtor derails Insolvency Application by Operational Creditor.

Case Laws IBC

November 19, 2024

The Appellate Tribunal upheld the dismissal of an application u/s 9 of the Insolvency and Bankruptcy Code due to improper service of notice u/s 8. The notice was issued to Key Managerial Personnel (KMP) of the Corporate Debtor (CD) but not to the CD itself at its registered office as mandated by Rule 5(2)(a) of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016. Issuing notice u/s 8 on Form 3 to the CD at its registered office is a prerequisite for filing an application u/s 9 by the Operational Creditor (OC). The Tribunal distinguished the cited case as it dealt with a different issue regarding the nomenclature of the company. Consequently, the appeal was dismissed.

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The Appellate Tribunal upheld the dismissal of an application ...

Improper notice to Corporate Debtor derails Insolvency Application by Operational Creditor.

Case Laws IBC

November 19, 2024

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