Skip to main content

NCLAT-Duty of Operational Creditor to provide correct address of Corporate Debtor under Insolvency Code

In M/s Bhash Software Labs Pvt. Ltd. v. M/s Mobme Wireless Solutions Ltd., the appellant challenged the order passed by NCLT admitting the application preferred by the respondent firm under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code) for initiation of Corporate Insolvency Resolution Process against the appellant. The Appellant alleged violation of rules of natural justice as no notice was served on the appellant under Section 8 of the I&B Code or under Rule 5(3) of the I&B (Application to Adjudicating Authority) Rules, 2016. It was also contended that since there existed a dispute as to the debt amount, the application under S. 9 was not maintainable.

The NCLAT perused the impugned order and found that the notice sent by the respondent was not served on the appellant. The Adjudicating Authority, instead of directing the respondents to issue fresh notice on correct and present address, observed, “However, the petition was sent to proper address”. 

It was held that it was the duty of the “Operational Creditor” to provide the correct and present address of the ‘Corporate Debtor” before preferring any application under Section 9 of the I&B Code and the impugned order could not be upheld having passed in violation of rules of natural justice.

As regards the existing dispute with regard to the debt amount, the Tribunal referred to an earlier case Company Appeal (AT) (Insol.) No. 6 of 2017, for interpretation of the meaning of “dispute” and “existence of dispute, if any” and held that, there being an “existence of dispute”, the petition under Section 9 preferred by respondent was not maintainable.

Comments

Post a Comment

Most viewed this month

Court approached in the early stages of arbitration will prevail in all other subsequent proceedings

In National Highway Authority of India v. Hindustan Steelworks Construction Limited, the Hon'ble Delhi High Court opined that once the parties have approached a certain court for relief under Act at earlier stages of disputes then it is same court that, parties must return to for all other subsequent proceedings. Language of Section 42 of Act is categorical and brooks no exception. In fact, the language used has the effect of jurisdiction of all courts since it states that once an application has been made in Part I of the Act then ―that Court alone shall have jurisdiction over arbitral proceedings and all subsequent applications arising out of that agreement and arbitral proceedings shall be made in that Court and in no other Court. Court holds that NHAI in present case cannot take advantage of Section 14 of the Limitation Act, 1963 for explaining inordinate delay in filing present petition under Section 34 of this Act in this Court.
Post a Comment
Read more

No Rebate For Stamp Duty Paid In Another State - Bombay HC

A three judge bench of the Hon'ble Bombay High Court (Bombay HC) in a recent judgment in the matter of Chief Controlling Revenue Authority, Maharashtra State, Pune and Superintendent of Stamp (Headquarters), Mumbai v Reliance Industries Limited, Mumbai and Reliance Petroleum Limited, Gujarat1 has held that orders in case of a scheme of arrangement under Section 391 to 394 of the Companies Act, 1956 (Act) involving different High Courts in multiple states, are separate instruments in themselves. Accordingly, stamp duty would be payable on all the orders (and consequently, all the states) without the benefit of remission, rebate or set-off.
Post a Comment
Read more

The recovery of vehicles by the financier not an offence - SC

Special Leave Petition (Crl.) No. 8907  of 2009 Anup Sarmah (Petitioner) Vs Bhola Nath Sharma & Ors.(Respondents) The petitioner submitted that  respondents-financer had forcibly taken away the vehicle financed by them and  illegally deprived the petitioner from its lawful possession  and  thus,  committed  a crime. The complaint filed by the petitioner had been  entertained  by  the Judicial Magistrate (Ist Class), Gauhati (Assam) in Complaint Case  No.  608 of 2009, even directing the interim custody of the vehicle (Maruti  Zen)  be given to the petitioner vide order dated  17.3.2009.  The respondent on approaching the Guwahati High  Court against this order, the hon'ble court squashed the criminal  proceedings  pending   before  the  learned Magistrate. After hearing both sides, the Hon'ble Supreme Court decided on 30th...
7 comments
Read more