Demand notice service under insolvency law must be fairly tested before rejecting a section 9 application.

Service of a section 8 demand notice under the Insolvency and Bankruptcy Code was treated as sufficient when sent to the corporate debtor's registered email address reflected in MCA records, and by registered post. The dismissal of the section 9 application on a disputed issue of non-service was unsustainable because the operational creditor was not given a fair opportunity to prove service, especially where the respondent remained ex parte. The rejection order was set aside and the matter remitted for fresh decision after permitting the creditor to establish compliance with section 8.

---

---

Issues: Whether the rejection of the section 9 application for alleged non-service of the demand notice was sustainable when the operational creditor claimed service by registered post and email, and whether the creditor ought to have been afforded an opportunity to meet the objection before dismissal.

Analysis: The demand notice under section 8 of the Insolvency and Bankruptcy Code, 2016 serves to put the corporate debtor on notice of the default and the proposed insolvency action. Service sent to the email address reflected in the Ministry of Corporate Affairs master data was treated as sufficient for the purpose of notice. The dismissal of the section 9 application was found unsustainable because the objection regarding proof of service was acted upon without giving the operational creditor an opportunity to substantiate service, particularly when the respondent had remained ex parte.

Conclusion: The rejection order was set aside, and the matter was remitted for fresh decision after granting the appellant an opportunity to establish service of the demand notice.

Ratio Decidendi: A section 9 application cannot be rejected on an untested objection as to service of demand notice when the operational creditor was not given a fair opportunity to establish compliance with section 8 and the notice was sent to the official email address reflected in the corporate records.

---