An advocate can, on behalf of Company issue a demand notice under Section 8 of IBC and no such document is required to establish his period of association with the said Company & Even if there is a debt and default, the Adjudicating Authority should use its discretion in admitting/ rejecting an Application- M/s Agarwal Veneers Vs. Fundtonic Service Pvt. Ltd. – NCLAT New Delhi
NCLAT held that we are of the considered view that as far as this issued is concerned, an advocate can, on behalf of the Company issue a demand notice under Section 8 and no such document is required to establish his ‘period of association’ with the said Company. It also held that the Hon’ble Supreme court in Vidarbha Industries Power Ltd. vs. Axis Bank Ltd. (2022) ibclaw.in 91 SC has observed that even if there is a debt and default, the Adjudicating Authority should use its discretion in admitting/ rejecting an Application. In the instant case, the Adjudicating Authority has rightly rejected the Application on this ground too.
