2017 (10) TMI 1436

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.... Hyderabad Bench, Hyderabad in CP (IB) No. 109/9/HDB/2017 whereby and whereunder the application preferred by the respondent - Operational Creditor under section 9 has been admitted, order of moratorium has been passed, IRP has been appointed and further directions passed in Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code'). 2. The main plea taken by the learned counsel for the appellant is that a dispute is in existence and other plea is that the notice under sub-section (1) of Section 8 has been issued not by the 'Operational Creditor' but a Law Firm/Advocate. 3. Respondent in its affidavit has not disputed that the notice under sub-section (1) of Section 8 was issued by a lawyer. 4. Similar issue fell for co....

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....u to unconditionally repay the unpaid operational debt (in default) in full within ten days from the receipt of this letter failing which we shall initiate a corporate insolvency resolution process in respect of [name of corporate debtor]. Yours sincerely, Signature of person authorised to act on behalf of the operational creditor Name in block letters Position with or in relation to the operational creditor Address of person signing " 30. From bare perusal of Form-3 and Form-4, read with sub-rule (1) of Rule 5 and Section 8 of the I&B Code, it is clear that an Operational Creditor can apply himself or through a person authorised to act on behalf of Operational Creditor. The person who is authorised to act on behalf of Operational ....

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....rred to above, we hold that an 'Advocate/Lawyer' or 'Chartered Accountant' or 'Company Secretary' in absence of any authority of the Board of Directors, and holding no position with or in relation to the Operational Creditor cannot issue any notice under Section 8 of the I&B Code, which otherwise is a 'lawyer's notice' as distinct from notice to be given by operational creditor in terms of section 8 of the I&B Code." 5. The case of the appellant being covered by the decision in "Uttam Galva Steels Limited" (Supra), we have no other option but to set aside the impugned order. 6. In effect, order(s) passed by Ld. Adjudicating Authority appointing any 'Interim Resolution Professional' or declaring moratorium, freezing of account, if any, and....