Tribunal overturns order due to missing demand notice, deems related orders illegal, allows appellant to resume operations.

The Tribunal set aside the impugned order under the Insolvency and Bankruptcy Code, 2016, due to the absence of a demand notice under Section 8, declaring the application incomplete and abated. Consequently, all related orders were deemed illegal, allowing the appellant to resume operations independently. The Adjudicating Authority was directed to determine the Interim Resolution Professional's fee. The appeal was allowed without costs, permitting the operational creditor to issue a fresh notice under Section 8 and file a new application if needed.

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Issues:
Challenge to impugned order under the Insolvency and Bankruptcy Code, 2016; Compliance with provisions of the I&B Code regarding notice issuance and dispute existence; Interpretation of Rules regarding transfer of winding up proceedings; Requirement of demand notice under Section 8 of the I&B Code; Completeness of application under Section 9; Legality of orders passed by Adjudicating Authority.

Analysis:
The judgment involves a challenge to an order passed by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016. The appellant contested that the respondent did not comply with the I&B Code provisions as no notice under Section 8 was issued, and the application was admitted despite a dispute. The respondent argued that there was no dispute, and partial payment was made during the proceedings. However, both parties acknowledged the absence of a notice under Section 8. The Tribunal referred to a similar case and highlighted Rule 5 of the Companies (Transfer of Pending Proceedings) Rules, 2016, which mandates the submission of information for admission of the petition within a specified period after transfer from the High Court.

The judgment emphasized the importance of a demand notice under Section 8 of the I&B Code, which triggers the obligation for the Corporate Debtor to either pay or dispute the claim. The prescribed format for filing an application under Section 9 includes specific details and required attachments such as invoice copies, bank statements, and affidavits. Due to the absence of the Section 8 notice in the present case, the Tribunal deemed the application incomplete and set aside the impugned order, declaring the application abated.

Consequently, all orders related to the appointment of an Interim Resolution Professional, moratorium declaration, and other actions were deemed illegal and set aside. The appellant was released from legal constraints and allowed to resume independent operations through its Board of Directors. The Tribunal directed the Adjudicating Authority to determine the Interim Resolution Professional's fee, to be paid by the appellant for the period of service. The appeal was allowed without costs, enabling the operational creditor to issue a fresh notice under Section 8 and file a new application if necessary.

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