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Lawyer Can Issue Demand Notice Of Unpaid Operational Debt On Behalf Of Operational Creditor

In MACQUARIE BANK LIMITED vs SHILPI CABLE TECHNOLOGIES LTD., answering two important issues of the Insolvency and Bankruptcy Code, the Supreme Court, in Macquarie Bank Limited vs Shilpi Cable Technologies Ltd, has held that a lawyer on behalf of the operational creditor can issue a demand notice of an unpaid operational debt. The court also held that the provision contained in Section 9(3)(c) of the Code is mandatory for initiating insolvency proceedings.

A bench of Justice RF Nariman and Justice Navin Sinha set aside the National Company Law Appellate Tribunal order which had dismissed an application seeking to initiate insolvency proceedings for non-compliance of the provision contained in Section 9(3)(c) of the Code, which, it held, is ‘mandatory’. The NCLAT also held that an advocate/lawyer cannot issue a notice under Section 8 on behalf of the operational creditor.

Article referred: http://www.livelaw.in/breaking-ibc-lawyer-can-issue-demand-notice-unpaid-operational-debt-behalf-operational-creditor-sc-read-judgment/

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