Service of notice gets affected when sent to correct address by registered post

Mukund Rajhans Vs Rajasthan Patrika Private Limited (NCLAT Delhi)

In the case of Mukund Rajhans vs. Rajasthan Patrika Private Limited, the National Company Law Appellate Tribunal (NCLAT) in Delhi examined the validity of the service of a demand notice. The key issue revolved around whether the notice was effectively served on the Corporate Debtor.

Here are the crucial points from the case:

Demand Notice and Service:

• The demand notice, dated 31st July 2018, was sent by registered post on 1st August 2018 to the registered address of the Corporate Debtor.
• The Corporate Debtor did not respond to the notice.
• Documentary evidence, including India Post details and the postal receipt, indicated that the demand notice was issued, despite some address discrepancies.

Business Dealings and Emails:

• Both parties had a long history of business dealings and continuous email exchanges.
• The Appellant actively participated in the proceedings before the Adjudicating Authority.

Validity of Service:

• The Respondent relied on the judgment of the Hon’ble Apex Court in Greater Mohali Area Development Authority.
• As per Section 27 of the General Clauses Act, 1897, and Section 114 Illustration (f) of the Evidence Act, service of notice is deemed effective when sent to the correct address by registered post.
• Unless the addressee proves otherwise, service is considered to have occurred at the time the letter would ordinarily be delivered.

Admission of Liability:

• The Applicant never disputed the address on which the demand notice was issued.
• The Corporate Debtor admitted the existence of the debt through emails and other correspondence.
• The date of default was established as 12th December 2015.
• The admission of liability on 18th September 2017 reset the period of limitation under Section 9 of the Insolvency and Bankruptcy Code.

In summary, the case underscores the importance of proper service of notices and the impact of an admission of liability on the limitation period.