Advocate-issued demand notice and absence of pre-existing dispute can sustain a section 9 insolvency application.

A demand notice under the Insolvency and Bankruptcy Code may validly be issued through an advocate on behalf of an operational creditor. A section 9 application was treated as maintainable because it was complete, no pre-existing dispute had been shown before the section 8 notice, and a later complaint about inferior quality of goods did not defeat the claim. The limitation objection was rejected because the right to apply arose after the Code came into force and the application was within the period prescribed by Article 137 of the Limitation Act, 1963. The corporate insolvency resolution process was therefore revived and directed to continue.

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Issues: Whether the section 9 application under the Insolvency and Bankruptcy Code, 2016 was maintainable in view of the demand notice issued through an advocate, the plea of limitation, and the alleged existence of dispute.

Analysis: The earlier dismissal of the insolvency appeal had been set aside and the matter remitted for fresh consideration. The Supreme Court had already held that a demand notice sent by a lawyer on behalf of an operational creditor is valid. On the facts, the section 9 application was found complete, no pre-existing dispute had been shown before issuance of the section 8 notice, and the plea regarding inferior quality of goods was raised only later. The limitation objection was rejected because the right to apply accrued after the Insolvency and Bankruptcy Code came into force and the application was filed within the prescribed period under Article 137 of the Limitation Act, 1963.

Conclusion: The section 9 insolvency proceeding was held to be valid and maintainable, and the corporate insolvency resolution process was revived and directed to continue.

Ratio Decidendi: A demand notice under section 8 of the Insolvency and Bankruptcy Code, 2016 may validly be issued through an advocate on behalf of the operational creditor, and a section 9 application is not barred by limitation or liable to fail absent a pre-existing dispute duly shown before notice.

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