Service of demand notice to Key Managerial Personnel of corporate debtor is valid: SC

Visa Coke Limited Vs Mesco Kalinga Steel Limited (Supreme Court of India)

Supreme Court held that demand notice under section 8 of the Insolvency and Bankruptcy Code [IBC] can be served upon corporate debtor through its Key Managerial Personnel. Accordingly, rejecting section 9 petition on technical ground is incorrect and not sustainable.

Facts- This appeal has been filed against the judgment and final order dated 03.10.2024 passed by the National Company Law Appellate Tribunal, Principal Bench, New Delhi in Comp. Appeal (AT)(Ins.) No. 247 of 2023 filed by the appellant herein. By the impugned order, the NCLAT dismissed the company appeal filed u/s. 61 of the Insolvency and Bankruptcy Code, 2016 against the order dated 24.01.2023 passed by the Adjudicating Authority viz., National Company Law Tribunal, Cuttack Bench, which dismissed the petition filed by the appellant u/s. 9 of the IBC seeking to initiate Corporate Insolvency Resolution Process against the respondent herein.

Conclusion- NCLAT, Principal Bench, New Delhi, in Shubham Jain v. Gagan Ferrotech Ltd. and Another, wherein, the issue that fell for consideration was ‘whether service of Demand Notice u/s 8 of the Code on a Director of the Corporate Debtor can be construed as deemed delivery or not for Initiation of Corporate Insolvency Resolution Process under Section 9 of the IBC’, held that service of notice on the Director must be held to be good service.