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2023 (1) TMI 1278 - AT - Insolvency and BankruptcyValidity of demand notice issued in terms of Section 8 of IBC - case of appellant is that the ‘Demand Notice’ was defective because it was sent by Jignesh Ajit Ganatra, who was subsequently appointed as IRP by the impugned order and the said IRP was a related party in terms of Section 5(24)(h) of the Code - HELD THAT:- A close scrutiny of the Section 5(24)(h) of IBC would show, firstly, that it relates to the Corporate Debtor and not to the Operational Creditor and secondly the Appellant was to lead evidence that the Director, Partner or Manager was accustomed to act on the directions or instructions of the said IP. Therefore, Section 5(24)(h) of the Code is not at all applicable to the facts and circumstances of the present case and thus the arguments raised in this regard, is hereby rejected - the provision is not applicable because the dispute is between two corporate entities and not in respect of the individuals. Whether an application under section 9 of the Code cannot proceed in view of fact that the principal amount has already been paid and only the component of interest is remaining? - HELD THAT:- It is to be seen at the time of the threshold when the application is filed under Section 9 of the Code as to whether it is pertaining only to the component of interest - the second contention is hereby rejected. It is pertinent to mention that this court was of the view that in order to help the Corporate Debtor to remain a going concern, some time be provided to the Corporate Debtor for the purpose of settling its ‘debts’ before the CoC is constituted but despite taking so many dates and even on 06.01.2023, a specific order was passed but the Appellant has failed to consolidate funds for the purpose of discharging his liability not only towards the Respondent who is the Operational Creditor but also towards various Interveners who had filed applications during the pendency of this Appeal. There are no merit in the present appeal and the same is hereby dismissed.
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