# In the matter of A. Murlidharan Vs. Chava Bharath KUmar & Ors. Company Appeal (AT) (Insolvency) No. 111-2018

> NCLAT judgment dated 2018-07-23. Citation: TCN-2018-NCLAT-00196. The case involves an appeal against the admission of an application under Section 9 of the…

- **Court:** NCLAT
- **Order date:** 23 Jul 2018
- **Citation:** TCN-2018-NCLAT-00196
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/a-murlidharan-vs-chava-bharath-kumar-ors-company-appeal-7b85e08e

## Summary

### Background

The case involves an appeal against the admission of an application under Section 9 of the Insolvency & Bankruptcy Code, 2016 ('I&B Code') against a 'Corporate Debtor'. The Adjudicating Authority (National Company Law Tribunal) admitted the application without evidence of proper notice to the 'Corporate Debtor'. The 'Operational Creditor' agreed to reinitiate proceedings with a fresh notice.

## Facts

An application under Section 9 of the Insolvency & Bankruptcy Code, 2016 was admitted against a 'Corporate Debtor' by the Adjudicating Authority (National Company Law Tribunal). The appellant, A.Murlidharan, challenged this admission. A key fact is that there was no evidence on record to suggest that the 'Corporate Debtor' received the required notice before the application was admitted. The 'Operational Creditor' acknowledged this procedural defect and agreed to reinitiate the proceedings with a fresh notice under Section 8(1) of the I&B Code. The address of the 'Corporate Debtor' was also a point of consideration for service of notice.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the application under Section 9 of the …

**Ratio:** The principle of natural justice requires that a party be given adequate notice and

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**Reasoning:** The court reasoned that the record lacked evidence of proper notice to the 'Corporate

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**Interpretation:** The interpretation emphasizes the mandatory nature of the notice requirement

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**Application:** In this case, the absence of evidence of proper notice to the 'Corporate

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## Parties

- **Judges:** S.J. Mukhop…; Bansi Lal…
- **Appellants:** A.Murlid…
- **Respondents:** Chava Bharath…

## Timeline

- **2018-01-17 — Impugned Ord…**: Date of the impugned order set…
- **2018-07-23 — Order Da…**: Date of the order by the National…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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