2017 (11) TMI 891

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....to as 'I&B Code') for initiation of corporate insolvency resolution processes against the appellant - M/s Anu Elastics Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority (National Company Law Tribunal), New Delhi Bench by impugned order dated 25th July, 2017 admitted the application, declared moratorium in terms of Section 15 of I&B Code and called for the names of interim Resolution Professional from Insolvency and Bankruptcy Board of India. The said order is under challenge in this appeal. 2. The main plea taken by the appellant is that no notice was issued or served by the Adjudicating Authority on the appellant. It is further submitted that though there is an existence of dispute, still the application has been admitted. 3. ....

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.... has been served at the given address, but the Adjudicating Authority wrongly treated the notice deemed to have been served. It is a settled law that on refusal of the notice by a party, the same can be deemed to have been served, but for insufficient or on wrong address, return of notice cannot be treated to be served. From the aforesaid fact, we find that the impugned order dated 25th July, 2017 was passed by the Adjudicating Authority completely in violation of rules of natural justice. 6. The letter issued on behalf of the appellant - Corporate Debtor dated 1st June, 2016 shows that there is also an 'existence of dispute' as is clear from the relevant portions and the preliminary objections as quoted below: "3. That your cli....

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....y amount of Rs. 47,56,651.50 paise as principle amount to your client. It is again reiterated herein that my client is not liable to pay any amount to your client. It is further wrong to states that my client is also liable to pay amount of Rs. 46,03,115/- to your client on account of interest." 7. For the reasons aforesaid, the impugned order cannot be sustained. The said order is accordingly set aside. 8. In effect, order(s), if any, passed by Ld. Adjudicating Authority appointing any 'Interim Resolution Professional' or freezing of account, if any, and all other order (s) passed by Adjudicating Authority pursuant to impugned order and action, if any, taken by the 'Interim Resolution Professional', including the advertisement, if an....