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2018 (12) TMI 675 - AT - Insolvency and BankruptcyCorporate insolvency process - steps for ‘Corporate Insolvency Resolution Process’ against the ‘Corporate Debtor’ - Held that:- From the provision of Section 8, it is clear that the legislature intended to put the ‘Corporate Debtor’ on notice that the amount due having defaulted if the amount is not paid. The ‘Operational Creditor’ may take steps for ‘Corporate Insolvency Resolution Process’ against the ‘Corporate Debtor’. It is not a mere formality but mandate of law that such notice is actually served on the ‘Corporate Debtor’ who may act accordingly. For the said reason, the Adjudicating Authority is required to record its satisfaction that the records, including service of demand notice are in order. The Adjudicating Authority is required to satisfy itself that the notice was actually served on the ‘Corporate Debtor’ not that technically it was served in the address. Adjudicating Authority having failed to do so, we have no other option but to set aside the order dated 18th June, 2018 and the order dated 4th October, 2018. The parties having settled the matter we are not remitting the matter to the Adjudicating Authority. The Adjudicating Authority will direct the Registrar NCLT, Kolkata Bench to release the amount in favour of the 1st Respondent- ‘Cytech Coatings Private Limited’ deposited on behalf of the ‘Corporate Debtor’ immediately. Orders passed by the Adjudicating Authority appointing ‘Resolution Professional’, declaring moratorium, freezing of account, and all other order (s) passed by the Adjudicating Authority pursuant to impugned order and action, taken by the ‘Resolution Professional’, including the advertisement, published in the newspaper calling for applications all such orders and actions are declared illegal and are set aside. The application preferred by Respondent under Section 9 of the ‘I&B Code’ is dismissed. Adjudicating Authority will now close the proceeding. The ‘Corporate Debtor’ (company) is released from all the rigour of law and is allowed to function independently through its Board of Directors from immediate effect.
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