Pre-admission notice in Section 7 insolvency proceedings is required before admission of a petition against the corporate debtor.

Before admission of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, the corporate debtor must be served with the application and given an opportunity to file a reply and be heard. The stated position treats pre-admission notice as necessary to ensure compliance with natural justice before any order of admission is passed. The directions also require service of notice in the prescribed manner and filing of proof of service before the next date. Notice to the corporate debtor was therefore directed before further consideration of the Section 7 petition.

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Issues: Whether, before admission of a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, notice and an opportunity of hearing are to be afforded to the corporate debtor.

Analysis: Relying on the settled position that the corporate debtor must be served with a copy of the application and given an opportunity to file a reply and be heard before any order of admission is made, the order treated pre-admission notice as necessary. The directions also required service of notice in the prescribed manner and filing of proof of service before the next date.

Conclusion: Notice to the corporate debtor was directed before further consideration of the Section 7 petition.

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