Court upholds Section 9 application without Section 8 notice, affirms admission order based on debt acknowledgment and default.

The Court upheld the Adjudicating Authority's decision to admit the Section 9 application, ruling that no Section 8 notice was required before filing. The judgment confirmed the acknowledgment of debt by the Corporate Debtor and found the notice in the winding up petition to be sufficient. Despite the Appellant's arguments on the timing of default, the Court dismissed the Appeal, affirming the admission order due to the established debt and default.

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Issues Involved:
The judgment deals with the issues of whether a Section 8 notice was necessary before filing a Section 9 application, the timing of default in relation to debt, acknowledgment of debt by the Corporate Debtor, and the sufficiency of notice in the winding up petition.

Issue 1: Section 8 Notice Requirement
The Appellant argued that no Section 8 notice was issued before the Section 9 application, challenging the admission order. The Larger Bench clarified that in this case, no notice under Section 8(1) was necessary for filing the Section 9 application. The Appeal was placed for hearing after this clarification.

Issue 2: Timing of Default in Relation to Debt
The Appellant contended that no default of debt had occurred before the admission of the Section 9 application. They highlighted a letter indicating that payment was to be made when work starts, suggesting the liability arose only then. However, the Respondent argued that the Corporate Debtor's only defense was the lack of Section 8 notice, implying no other submission needed consideration.

Issue 3: Acknowledgment of Debt
The letter dated 07.08.2013 was crucial as it acknowledged the debt by the Corporate Debtor. Although the Appellant claimed payment was to start with work commencement, the acknowledgment still established liability. The Adjudicating Authority's order confirmed that the debt was never disputed, supporting the admission of the Section 9 application.

Issue 4: Sufficiency of Notice in Winding Up Petition
Before the Section 9 application, a Company Petition was filed in the High Court, with subsequent proceedings in the NCLT. The Corporate Debtor received notice in the winding up petition, which was later transferred. Despite the Appellant's argument of no default, the Court found that sufficient notice had been provided, rejecting the claim of no default.

In conclusion, the judgment upheld the Adjudicating Authority's decision to admit the Section 9 application, as the debt was proven, and default was established by the Appellant. The Court dismissed the Appeal, finding no error in the admission order.

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