08/01/2021

M/s Dewan Housing Finance Corporation Limited  Vs. Mr. Neelesh Gupta  Resolution Professional of  M/ s Indian Polychemical Industries Pvt Ltd. – NCLT Ahmedabad Bench

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M/s Dewan Housing Finance Corporation Limited  Vs. Mr. Neelesh Gupta  Resolution Professional of  M/ s Indian Polychemical Industries Pvt Ltd. – NCLT Ahmedabad Bench Read Post »

In case of a person other than an Advocate, the Board Resolution would be required but in the event of a Demand Notice being issued by an Advocate duly instructed by his client (Operational Creditor), there is no need of requirement of authority being backed by the Board Resolution – Mohit Minerals Ltd. Vs. Nidhi Impotrade Pvt. Ltd. – NCLAT New Delhi

Application filed by the Appellant- Operational Creditor under Section 9 of the IBC came to be dismissed at the hands of the Adjudicating Authority holding the same to be not maintainable for the reasons that the demand notice was issued without any authority.

NCLAT held that notice delivered could not be held to be bad in law unless it was shown that the lawyer was not duly instructed. It appears from the impugned order that the Adjudicating Authority was aware of this legal proposition but in the opinion of the Adjudicating Authority there was no due authorization backed by Board Resolution of the Operational Creditor. This finding is unsustainable as in case of a person other than an Advocate, the Board Resolution would be required but in the event of a demand notice being issued by an Advocate duly instructed by his client (Operational Creditor), there is no need of requirement of authority being backed by the Board Resolution. Once an Advocate was duly instructed to issue the demand notice, there was no room for holding that the notice delivered by the Advocate was not a notice delivered by an authorized person.

In case of a person other than an Advocate, the Board Resolution would be required but in the event of a Demand Notice being issued by an Advocate duly instructed by his client (Operational Creditor), there is no need of requirement of authority being backed by the Board Resolution – Mohit Minerals Ltd. Vs. Nidhi Impotrade Pvt. Ltd. – NCLAT New Delhi Read Post »

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