Court sets aside NCLT order due to lack of proper notice, emphasizes mandatory service.

The Court allowed the Civil Revision Petition, setting aside the National Company Law Tribunal's order for admitting an application without proper notice. The Court emphasized the mandatory nature of serving notice at the registered office, highlighting the importance of preventing prejudice to the corporate debtor's rights. It asserted its power under Article 227 to rectify instances of injustice or incorrect jurisdiction. The Tribunal's failure to adhere to statutory requirements and principles of natural justice under the Companies Act led to the Court's decision to overturn the order. The operational creditor was directed to follow proper procedures, and the corporate debtor was granted the opportunity to contest the case before the Tribunal.

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Issues:
Violation of mandatory provisions of the Insolvency and Bankruptcy Code, 2016 by the National Company Law Tribunal in admitting an application without proper notice.

Analysis:
The petitioner, a Corporate Debtor, challenged the order of the National Company Law Tribunal admitting an application without proper notice. The petitioner argued that the operational creditor failed to send notice to the registered office, as required by the Code and Rules. The respondent contended that notice was sent to the city office and that the petitioner was aware of the proceedings. The respondent emphasized the limited supervisory role of Article 227 of the Constitution of India. The petitioner cited various judgments to support their case.

The Court observed that the notice was served at the office in Chennai, not the registered office in Nagercoil. The Code and Rules clearly mandate delivery of notice at the registered office before filing an application. Failure to adhere to this requirement was deemed a violation. Citing previous judgments, the Court emphasized the mandatory nature of statutory requirements and the consequences of non-compliance.

The Court highlighted the importance of serving notice at the registered office to prevent prejudice to the corporate debtor's rights. It noted that the Tribunal overlooked this mandatory requirement, leading to potential injustice. The Court asserted its power under Article 227 in cases of grave injustice or failure of justice, where jurisdiction is not exercised correctly. The lack of adherence to natural justice principles under the Companies Act further supported the Court's decision to set aside the Tribunal's order.

In conclusion, the Court allowed the Civil Revision Petition, setting aside the Tribunal's order. It directed the operational creditor to pursue remedies in compliance with mandatory requirements and granted the corporate debtor the opportunity to contest the case before the Tribunal. No costs were awarded, and the connected application was closed.

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