Who received demand notice wasn’t concern of applicant as long as demand notice was duly served at registered address
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- Last Updated on 11 October, 2021
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Case Details: Abhinandan Jain v. Tanaya Enterprises (P.) Ltd. - [2021] 130 taxmann.com 469 (NCLAT- New Delhi)
Judiciary and Counsel Details
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- Anant Bijay Singh, Judicial Member and Ms. Shreesha Merla, Technical Member
- Sudhir K. Makkar, Sr. Adv., Shalabh Singhal and Ms. Saumya Gupta, Advs. for the Appellant.
- Anant A. Pavgi and Abhishek Anand for the Respondent.
Facts of the Case
The Applicant-operational creditor engaged in the business of manufacturing and trading of fabrics and garments supplied goods to respondent/corporate debtor and raised invoices. The Corporate debtor made only part payment.
On being aggrieved, the Operational creditor issued a demand notice but the corporate debtor failed and neglected to make payment of demand. Consequently, the Adjudicating authority admitted application under section 9 filed by operational creditor.
On appeal it was contended by the corporate debtor that all six invoices and delivery challans raised by operational creditor were false and fabricated; and that demand notice was served upon a Chartered Accountant firm and not upon the corporate debtor.
NCLAT Held
It was noted that all six invoices and delivery challans raised by operational creditors had been duly acknowledged by the corporate debtor by putting their stamp and, hence, denying and disputing invoices and delivery challans did not have any foundation.
Further, it was established that demand notice had been duly served through registered post at the registered address of the corporate debtor and proof of delivery by way of acknowledgment card had been attached by the operational creditor.
It was well settled that as long as demand notice had been addressed properly and once served at the registered address, it was no concern of the applicant as to who received it. Since communication on record clearly established that there was a default and debt due as claimed by an operational creditor, there was no illegality or infirmity in the impugned order of Adjudicating Authority in admitting application.
Case Review
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- Tanaya Enterprises (P.) Ltd. v. Risa International Ltd. [2021] 130 taxmann.com 468 (NCLT – Mum.) (para 32) affirmed [See Annex].
List of Case Referred to
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- Noharlal Verma v. District Co-operative Central Bank Ltd. [2008] 14 SCC 445 (para 7)
- Thambusamy v. Mani 2009 SCC Online Mad. 1774 (para 7)
- Pegasus Assets Reconstructions (P.) Ltd. v. Yashomati Hospitals (P.) Ltd. 2020 SCC Online NCLAT 793 (para 7)
- Babulal Vardharji Gurjar v. Veer Gurjar Aluminium Industries (P.) Ltd. [2020] 118 taxmann.com 323 (SC) (para 8)
- Risa International (P.) Ltd. v. Aakash Lifestyle (P.) Ltd. [CP (IB) No. 2306/I&BP/2019, dated 14-11-2019] (para 10)
- Risa International (P.) Ltd. v. Shirin Exports (P.) Ltd. [CA (IB) No. 2581/I&BP/2019, dated 14-11-2019] (para 10)
- Madhusudan Tantia v. Amit Choraria [Co. Appeal (AT) (Insolvency) No. 557 of 2020, dated 12-10-2020] (para 12)
- BK Educational Services (P.) Ltd. v. Parag Gupta & Associates (P.) Ltd. [2019] 11 SCC 633 (para 24)
- Gaurav Hargovindbhai Dave v. Asset Reconstruction Co. (India) Ltd. [2019] 109 taxmann.com 395/156 SCL 397 (SC) (para 24)
- Jignesh Shah v. Union of India [2019] 109 taxmann.com 486/156 SCL 542 (SC) (para 24)
- Vashdeo R. Bhojwani v. Abhyydaya Coop. Bank Ltd. [2019] 109 taxmann.com 198/156 SCL 539 (SC) (para 24)
- Mobilox Innovations (P.) Ltd. v. Kirusa Software (P.) Ltd. [2017] 85 taxmann.com 292/144 SCL 37 (para 30).
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