TaxTMI 
TaxTMI 
2020 (1) TMI 472
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....y 'Flywheel Logistics solutions Pvt. Ltd.', Respondent' No 2 has preferred this Appeal under Section 61 of the 'Insolvency and Bankruptcy Code, 2016, against the impugned order dated 2-9-2019, passed by the Adjudicating Authority (National Company Law Tribunal) New Delhi Bench in [C. P. No. (IB)- 1488/ND/2018, titled as Kapoor Logistics v. Flyweel Logistics Solutions (P.) Ltd. The learned Tribunal has by its order dated 2nd September 2019 admitted the petition filed under Section 9 of the 'I&B Code 2016 and has initiated 'Corporate Insolvency Resolution Process' against the 2nd Respondent, i.e. Flywheel Logistics Solutions Pvt Ltd. Being aggrieved by the impugned order dated 2nd September 2019, the instant appeal....
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....'Corporate Debtor' vide e-mail dated 27th July 2018. But despite repeated e-mail and reminders, the outstanding dues were not paid by the 'Corporate Debtor' to the Respondent /Applicant. 5. After that the Respondent No.1/ Applicant issued Demand Notice under Section 8 of the 'Insolvency and Bankruptcy Code, 2016, under Rule 5 of the Insolvency & Bankruptcy Code Application to Adjudicating to Authority Rules, 2016, calling upon the 'Corporate Debtor' to pay the total outstanding amount of Rs. 33,69,997/- (Thirty-Three Lakhs Sixty-Nine Thousand Nine Hundred and Ninety-Seven Only) and contended that the services rendered by the Applicant were settled for a sum of Rs. 35,68,484/- and further stated that last payme....
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....solvency and Bankruptcy Code, 2016 under Form 3 and Form 4, both dated 1st August 2018. But the Demand Notice served on the Respondent No. 2, relates to the separate corporate Entity by the name of 'M/s Flywheel Logistics Pvt. Ltd.', having deferent CIN Number and different registered address. 10. Heard the argument of the learned counsel for the parties and perused the record. The question of law that arises for our determination is as under: Whether the demand notice issued U/S 8 of the I & B Code 2016, against the corporate debtor, for the dues of sister concern/group company, can be treated as a valid notice? That on perusal of the record it appears that the purported invoices were issued against M/s Flywheel Logisti....
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....otice under Section 8 of the 'IBC' has been served against the 'Flywheel Logistics Solutions Pvt. Ltd.' having CIN No. U60232DL2015PTC288609. 14. Therefore, on the above basis, it is clear that the demand notice issued against the 'Corporate Debtor' is not a valid notice U/S 8 of the Code. The alleged demand notice relates to the dues of the other Company, namely 'M/s Flywheel Logistics Private Limited'. For filing a petition under Section 9 of the Code, service of demand notice under Section 8 is mandatory requirement, and after that if a 'Corporate Debtor' fails to pay the dues within 10 days of service of demand notice with copy of the invoices, as mentioned in sub-Section 1, or bring to the not....