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Corporate Law

Insolvency Plea Rejected for Failure to Prove Mandatory Notice Service

Case Law Details

TaxGuru Citation
2025 taxguru.in 11707
Case Name
Indo Spirits Vs Origin Appliances Pvt. Ltd. (NCLAT Delhi)
Date of Judgement/Order
Only available for paid members
Courts
NCLAT
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Indo Spirits Vs Origin Appliances Pvt. Ltd. (NCLAT Delhi)

The NCLAT upheld the rejection of a Section 9 application on the ground that the applicant failed to prove valid service of the mandatory Section 8 demand notice on the corporate debtor. Although the applicant submitted postal proof with the application, the notice was returned undelivered with the remark “addressee left without instructions,” and no evidence showed service on any director or delivery at the registered office. After the hearing concluded, the applicant filed an additional affidavit claiming email service dated 13.01.2025, but the Adjudicating Authority held this to be an afterthought aimed at curing a fundamental defect. The tribunal found that the belated email claim lacked credibility, was not part of the original record, and did not meet Rule 5 requirements. Since statutory preconditions for initiating insolvency under Section 9 were not fulfilled, the application was rightly dismissed, though the applicant may file afresh after proper service of notice.

FULL TEXT OF THE NCLAT JUDGMENT/ORDER

This appeal has been filed against the order dated 06.06.2025 by which Section 9 application filed by the Appellant has been rejected on the ground that the Appellant has failed to prove service of Section 8 notice on the CD.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 19,757

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