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TMI Blog2022 (7) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... mar Jain, Member (J). This appeal is filed by Jitendra Kumar Singh, Suspended Director of M/s Mor Mukat Marketing Pvt. Ltd. (Corporate Debtor) against the Order dated 12th April 2022 passed by the National Company Law Tribunal, New Delhi (Court No. IV) in Company Petition No.IB-3017(ND)/2019 by which an application filed under Section 9 of the Insolvency and Bankruptcy Code 2016(for short the Code) by M/s Vishakarma Tool Works (Operational Creditor) has been admitted, Corporate Insolvency Resolution Process (CIRP) has been initiated and Insolvency Resolution Professional (IRP) has been appointed followed by moratorium as envisaged under Section 14(1). 2. In brief, the operational creditor filed an application under Section 9 of the Code t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onal creditor raised three invoices 0021, 001 and 002 dated 28.02.2016, 05.04.2016 and 25.04.2016 for an amount of Rs.240000/-, 395760/-, 1108740 respectively. It is also alleged that the moulds were defective and the operational creditor did not take back the defective moulds nor were replaced as promised. 6. The learned Tribunal, while initiating CIRP, observed that in order to prove existing dispute the operational creditor has placed reliance on selective Whatsapp messages without there being any corroborative piece of evidence. The corporate debtor appears to have not raised any issue before the Tribunal regarding the non-compliance of the mandatory provisions of Section 8 in regard to the service of notice upon the corporate debtor a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.388/389, Biscuit Factory Road, Nasir Ganj Diga, Danapur, Patna. In this regard he has relied upon the decisions of this Tribunal rendered in the case of Jyoti Strips Pvt. Ltd. Vs. J.S.C. Ispat Pvt. Ltd. Company Appeal (AT) (Insolvency) No.775 of 2020 and Mr. Shalender Sharma, Director of R&M International Pvt. Ltd. Vs. Ercon Composites Company Appeal (AT) (Ins.) 159 of 2020. 7. On the other hand, counsel appearing on behalf of the Respondent has submitted that the debt is acknowledged in the books of accounts of the Corporate Debtor and has referred to the decisions of the Hon'ble Supreme Court in the case of Mahabir Cold Storage Vs. CIT 1991 Supp.(1) SCC 402, A.V. Murthy Vs. B.S. Nagabasavanna (2002) 2 SCC 645 and Asset Reconstruc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to Adjudicating Authority) Rules, 2016. 9. We have heard learned counsel for the parties and perused the record with their able assistance. 10. It is pertinent to mention that as per the scheme of the Code, Section 8 provides that an operational creditor may, on the occurrence of a default, deliver a demand notice of unpaid operational debt, copy of an invoice demanding payment of the amount involved in the default, to the corporate debtor in such form and manner as may be prescribed and within 10 days of the receipt of the demand notice, the corporate debtor is required to inform the operational creditor about the existence of a dispute, pendency of a suit or Arbitration proceedings, before the receipt of such notice or invoice, the paym ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce could be served either at the registered office or upon the Whole Time Director. It means that service upon one of the entities is the sufficient compliance of Section 8(2) of the Code and both are not necessary. In the case of Jyoti Strips Pvt. Ltd. (supra) it has been held that Section 8 of the Code read with Rule 5 of the Rules provides that service of demand notice has to be served upon the corporate debtor at its registered address. But no such issue was involved in it that in case it is not served upon a Whole Time Director then it would be an insufficient compliance. It is not the case of the appellant that notice was not served upon the whole Time Director. As a matter of fact the notice was served upon R.K. Gupta who is the Dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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