{"id":153494,"date":"2017-08-31T17:17:49","date_gmt":"2017-08-31T11:47:49","guid":{"rendered":"http:\/\/www.scconline.com\/blog\/?p=153494"},"modified":"2017-09-15T16:48:51","modified_gmt":"2017-09-15T11:18:51","slug":"duty-of-operational-creditor-to-provide-correct-address-of-corporate-debtor-before-preferring-an-application-under-s-9-of-the-ib-code","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2017\/08\/31\/duty-of-operational-creditor-to-provide-correct-address-of-corporate-debtor-before-preferring-an-application-under-s-9-of-the-ib-code\/","title":{"rendered":"Duty of Operational Creditor to provide correct address of Corporate Debtor before preferring an application under S. 9 of the I&B Code"},"content":{"rendered":"

National Company Law Appellate Tribunal:<\/strong> While delivering the judgment in an appeal filed to quash the order passed by the National Company Law Tribunal, Chennai Bench, whereby it admitted 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, a two Member Bench comprising of S.J. Mukhopadhaya, J. (Chairperson) and Balvinder Singh, Technical Member, set aside the impugned order holding that the application preferred by the respondent was not maintainable.<\/p>\n

The appellant and the respondent entered into an agreement whereby the respondent provided SMS sending services for and on behalf of the appellant. There was a dispute regarding payment for services. The respondent claimed certain outstanding amount and the appellant alleged poor services as provided by the respondent. The respondent preferred the above said application and the impugned order was passed.<\/p>\n

The appellant challenged the impugned order contending violation of rules of natural justice as no notice was served on the appellant under S. 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.<\/p>\n

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.<\/p>\n

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.<\/p>\n

Accordingly the appeal was allowed and the impugned order was set aside directing that any orders passed by the Adjudicating Authority pursuant to the impugned order, be set aside. [M\/s Bhash Software Labs Pvt. Ltd. v. M\/s Mobme Wireless Solutions Ltd.,\u00a02017 SCC OnLine NCLAT 205<\/a> , dated August 29, 2017]<\/p>\n","protected":false},"excerpt":{"rendered":"

National Company Law Appellate Tribunal: While delivering the judgment in an appeal filed to quash the order passed by the National Company <\/p>\n","protected":false},"author":91,"featured_media":153604,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,11],"tags":[22014],"class_list":["post-153494","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-tribunals_commissions_regulatorybodies","tag-nclat"],"yoast_head":"\nDuty of Operational Creditor to provide correct address of Corporate Debtor before preferring an application under S. 9 of the I&B Code | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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Brief facts of the case are that the respondent Bank preferred applications under Section 9 of the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":200619,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/08\/25\/if-debt-has-been-disputed-question-of-default-doesnt-arise-orders-under-section-9-ib-code-quashed-nclat\/","url_meta":{"origin":153494,"position":1},"title":"If \u2018debt\u2019 has been \u2018disputed\u2019, question of default doesn’t arise; orders under Section 9 I&B Code quashed: NCLAT","author":"Bhumika Indulia","date":"August 25, 2018","format":false,"excerpt":"National Company Law Appellate Tribunal (NCLAT): A two-member bench comprising of Justice S.J. Mukhopadhaya, Chairperson and Justice A.I.S. Cheema, Member (Judicial), allowed an appeal filed against the order of National Company Law Tribunal, Mumbai whereby an application preferred by the respondent (Operational Creditor) under Section 9 of the Insolvency and\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":243994,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/02\/17\/insolvency\/","url_meta":{"origin":153494,"position":2},"title":"NCLAT | Insolvency process proceeded without \u2018Demand Notice\u2019 being served under S. 8 IBC due to change in ‘registered address\u2019. Does Insolvency and Bankruptcy Code allow to proceed in such circumstances? Read on","author":"Bhumika Indulia","date":"February 17, 2021","format":false,"excerpt":"National Company Law Appellate Tribunal (NCLAT): The Division Bench of Venugopal M (Judicial Member) and Alok Srivastava (Technical Member) held that a demand notice is a forerunner to the commencement of insolvency proceedings against a corporate debtor. Unpaid demand notice is good enough to exhibit the debtor\u2019s inability to pay\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":201829,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/09\/15\/allottees-of-real-estate-project-financial-creditors-under-amended-section-58f-of-i-appeal-against-nclt-order-allowed\/","url_meta":{"origin":153494,"position":3},"title":"Allottees of real estate project \u2018financial creditors\u2019 under amended Section 5(8)(f) of I&B Code; appeal against NCLT order allowed","author":"Bhumika Indulia","date":"September 15, 2018","format":false,"excerpt":"National Company Law Appellate Tribunal (NCLAT): A two-member bench comprising of Justice S.J. Mukhopadhaya, Chairperson and Justice A.I.S. Cheema, Member (Judicial) allowed an appeal filed against the order of National Company Law Tribunal, New Delhi whereby appellant\u2019s application under Section 7 of the Insolvency and Bankruptcy Code, 2016 was dismissed.\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":201242,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/09\/03\/application-under-sections-7-9-or-10-i-nclt-not-required-to-record-detailed-decision-thereunder-nclat\/","url_meta":{"origin":153494,"position":4},"title":"Application under Sections 7, 9 or 10 I&B Code not adversarial litigation; NCLT not required to record detailed decision thereunder: NCLAT","author":"Bhumika Indulia","date":"September 3, 2018","format":false,"excerpt":"National Company Law Appellate Tribunal (NCLAT): A two-member bench comprising of Justice S.J. Mukhopadhaya, Chairperson and Justice Bansi Lal Bhat, Member (Judicial)\u00a0 dismissed an appeal filed against the order of the National Company Law Tribunal, Chennai whereby the application filed by the Financial Creditor under Section 7 of the Insolvency\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":205629,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/11\/22\/admission-of-application-under-section-9-ib-code-without-notice-to-corporate-debtor-held-contrary-to-law-violative-of-natural-justice-nclat\/","url_meta":{"origin":153494,"position":5},"title":"Admission of application under Section 9 I&B Code without notice to corporate debtor held contrary to law, violative of natural justice: NCLAT","author":"Bhumika Indulia","date":"November 22, 2018","format":false,"excerpt":"National Company Law Appellate Tribunal (NCLAT): A Two-Member Bench comprising of S.J. Mukhopadhaya(Chairperson) and Bansi Lal Bhatt (Member-Judicial), JJ. set aside an order passed by the National Company Law Tribunal (New Delhi) for being violative of principles of natural justice. NCLAT had admitted the application filed by the respondent (operational\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/08\/NCLAT.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/153494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/91"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=153494"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/153494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/153604"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=153494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=153494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=153494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}