TMI Blog2021 (1) TMI 185X X X X Extracts X X X X X X X X Extracts X X X X ..... ntemplated under Section 8(1) of the I B Code which obligates upon the Operational Creditor to deliver a demand notice of unpaid operational dues upon the Corporate Debtor, once default occurs. The delivery of demand notice is intended to put the Corporate Debtor on notice so that in the event of there being a pre-existing dispute like in the form of a Civil Suit or arbitration proceedings pending in regard to the amount in respect whereof default is alleged to have been committed, the Corporate Debtor can bring such pre-existing dispute to the notice of the Operational Creditor. It is also aimed at providing the Corporate Debtor with an opportunity of clearing the liability in case he does not dispute the claim. It is by now well settled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to accept delivery of notice, the Adjudicating Authority would not be justified in coming to conclusion that notice has not been served on the Corporate Debtor. The finding recorded by the Adjudicating Authority in regard to delivery of demand notice cannot be supported. The finding is erroneous, to say the least. The impugned order suffers from grave legal infirmity and is required to be set aside - matter remanded back to the Adjudicating Authority who may, after providing the Corporate Debtor an opportunity of settling the claim, pass an order of admission or otherwise of the application under Section 9 of the I B Code filed by the Appellant- Operational Creditor upon recording of satisfaction in regard to its completion and othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efused by the Corporate Debtor. Reference in this regard is made to page 57 of the appeal paper book which bears the endorsement on the postal article, stated to have been containing the demand notice, which reads addressee refused service . Learned counsel for the Appellant submits that refusal to accept demand notice would not amount to non-delivery of notice and the only inference available thereunder is that the Respondent- Corporate Debtor, being aware of the contents of the notice, refused to accept the delivery thereof to avoid the legal consequences. 3. Heard learned counsel for the Appellant and perused the record. 4. An application under Section 9 of the I B Code can be filed by the Operational Creditor for initiation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reditor, Page 55 which is the copy of speed post receipt and Page 57 which is the copy of the postal article bearing endorsement of the postal authority to the effect that the addressee refused service . Learned counsel for the Appellant has also invited our attention to certain developments that had taken place in regard to delivery of limited notice issued by the Adjudicating Authority to Corporate Debtor. Reference is made to Page 93 of the appeal paper book which shows that the notice issued by the Adjudicating Authority has been delivered to Corporate Debtor on 14th November, 2019 on the same address, in response whereof Respondent appeared before the Adjudicating Authority. In view of the material relied upon by the Appellant, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quisite steps for service of statutory notice. Viewed in this background, the finding recorded by the Adjudicating Authority in regard to delivery of demand notice cannot be supported. The finding is erroneous, to say the least. The impugned order suffers from grave legal infirmity and is required to be set aside. 5. For the aforesaid reasons, we set aside the impugned order and remand the matter back to the Adjudicating Authority who may, after providing the Corporate Debtor an opportunity of settling the claim, pass an order of admission or otherwise of the application under Section 9 of the I B Code filed by the Appellant- Operational Creditor upon recording of satisfaction in regard to its completion and other legal requirements. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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