An Advocate can issue demand notice on instruction of his client (operational creditor), even though not backed by Board Resolution

Mohit Minerals Ltd Vs. Nidhi Impotrade Pvt Ltd  (NCLAT)

An Advocate can issue demand notice on the instruction of his client (the operational creditor), even though not backed by the Board Resolution

Brief Facts: An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 was filed by the Appellant- Operational Creditor and dismissed by the Adjudicating Authority (National Company Law Tribunal), Ahmedabad Bench, Ahmedabad, while holding the same to be not maintainable for the reasons that the demand notice was issued without any authority by an advocate.

Decision: Appeal Allowed

Reason: The NCLAT reiterating the dictum of the Hon’ble Apex Court in Macquaire Bank Limited v. Shilpi Cable Technologies Limited- (2018) 2 SCC 674

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