Jord Engineers India Ltd. v. Valia & Co.

INSOLVENCY AND BANKRUPTCY CODE, 2016,

--Initiation of corporate insolvency resolution process by operational creditor --Demand notice sent through advocate Appellate Tribunal set aside order of insolvency process --Whether notice sent through advocate on behalf of operational creditor was valid--Where CIRP was initiated against the corporate debtor and that the Appellate Tribunal set aside the said order on the ground that the demand notice given by Advocate on behalf of operational creditor was invalid, however, the said notice was held valid by the Supreme Court, therefore, the CIRP initiated against the corporate debtor was to be revived.--V (operational creditor) filed application for initiation of CIRP against JEIL. The application was admitted by the Adjudicating Authority and thereby, CIRP was initiated against JEIL. However, the Appellate Tribunal set aside the said order on the ground that the demand notice under section 8(1) was given through the Advocate. V preferred an appeal against the order of Appellate Tribunal. Supreme Court set aside the order and remitted back the appeal for fresh disposal in accordance with law. Held: In Macquarie Bank Ltd. v. Shilpi Cable Technologies Ltd. (2017) 88 taxmann.com 180 (SC) : (2018) 142 CLA 1 (SC), it was held that a notice sent on behalf of an operational creditor by a lawyer was valid. Further, the application under section 9 was complete and there was neither an existence of dispute nor V annexed any evidence to show existence of dispute. Therefore, the CIRP initiated against JEIL was revived.