2025 (6) TMI 2110

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Infratech Private Limited, the Corporate Debtor (CD) puts a challenge to the order that, was passed in CP No.257/7/HDB/2023, being the proceedings, which were drawn by the Financial Creditor by invoking the provisions contained under Section 7 of the I & B Code, 2016. Consequent to the culmination of the proceedings under Section 7 of the I & B Code, Corporate Insolvency Resolution Process (CIRP) Proceedings was initiated as against M/s. GJS Infratech Private Limited, the Corporate Debtor herein by passing of the Impugned Order. 2. The Learned Counsel for the Appellant questions the propriety of the Impugned Order on the limited ground that, there had been no effective service of notice of the proceedings upon him, and hence there was a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h, for making endeavours to effect upon the service of the notice on the Appellant. 4. We are of the view that in so far as the argument extended by the Learned Counsel for the Appellant, in the context of the provisions contained under Rule 208(1) of the Postal Services Rules 1933 is concerned, it may not have much bearing in the instant case, for the reason being that, the implications of the said rule, will have certain relevance in the context of service of the notice, in case the same has been claimed to have been served by virtue of a registered post, which was reported to be returned undelivered due to non-availability of the Appellant at the given address. However perusal of the order sheets and particularly, that of the Order of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....f a substituted mode of service, where there will be a deeming presumption under Order V Rule 20(2) of CPC that, when the process of service of notice is carried by a publication and when the factum of the Affidavit of Service having been filed and the direction having been issued for carrying the publication are facts which is not denied by the Appellant, the notice is deemed to have been served on the Appellant, Accordingly the order of 23.02.2024, where the Tribunal has directed to proceed the matter exparte as against the present Appellant, is an order which will sustain in the eyes of law, particularly when no attempt was ever made by the Appellant to seek the recall of the order directing to proceed exparte. The reference made to the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....iew, and particularly in the context of the pleading raised in para 6 in the counter affidavit, the knowledge of the DRT proceeding was very well attributed to the Appellant which cannot be denied at the state of Section 7 proceedings on the ground of alleged non-service of notice. 10. Since there was an effective service and since there was effective knowledge, we don't find any merit in the argument extended by the Learned Counsel for the Appellant in the context that, he was not given an opportunity to defend his case because of non-compliance of the provision contained under Indian Postal Rule of 1933, as contained in Rule 208(1), because even after the notice was served by paper publication, Learned Tribunal ordered for service of n....