NISHANT
Where a law firm has issued notice of demand and it has no authorization for the same, such notice of demand cannot be considered to be a demand notice under sub-section (1) of section 8 and petition under section 9 is not maintainable.
NISHANT MEHROTRA 11 Feb 2018

Where a law firm has issued notice of demand and it has no authorization for the same, such notice of demand cannot be considered to be a demand notice under sub-section (1) of section 8 and petition under section 9 is not maintainable.

NCLAT :: In Kumar Jyoti Ranjan & Ms Priyanka Kumari vs. Innovation House Industries (P.) Ltd. :: Insolvency and Bankruptcy Code, 2016 – Section 9 read with section 8 – Corporate Insolvency Resolution Process – Initiation by operational creditor – Notice issued by law firm ‘Corporate Legal Partners’ holding no position or relation to operational creditor – Can such notice be treated to be a demand notice under section 8(1) – Is such petition under section 9 maintainable – Whether it is to be held that the demand notice issued by the law firm cannot be treated to be demand notice issued under sub-section (1) of section 8 – Held, yes – Whether petition under section 9 was, therefore, not maintainable – Held, yes – Whether, consequently, the order passed by the Adjudicating Authority appointing interim resolution professional, declaring moratorium, freezing of account and all other orders passed pursuant to the impugned order including the advertisement published in the newspaper calling for application and all such orders and actions are declared illegal and are set aside – Held, yes [Paras 9 & 11].


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