# In the matter of Anu Elastics Pvt. Ltd. Vs. Aggarwal Elastics CA (AT) No. 145-2017

> NCLAT judgment dated 2017-10-10. Citation: TCN-2017-NCLAT-00104. The case involves an appeal against the order of the Adjudicating Authority (National Company…

- **Court:** NCLAT
- **Order date:** 10 Oct 2017
- **Citation:** TCN-2017-NCLAT-00104
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/anu-elastics-pvt-ltd-vs-aggarwal-elastics-ca-6d7e2bed

## Summary

### Background

The case involves an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), New Delhi Bench, which admitted an application filed by the respondent, Aggarwal Elastics Pvt. Ltd., under Section 9 of the Insolvency and Bankruptcy Code, 2016, for initiating corporate insolvency resolution processes against the appellant, Anu Elastics Pvt. Ltd. The Adjudicating Authority had also declared a moratorium and called for names of interim Resolution Professionals. The appellant challenged the order, primarily on the grounds that no notice was issued or served by the Adjudicating Authority and that there was an existing dispute.

## Facts

Aggarwal Elastics Pvt. Ltd. (Operational Creditor) filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate corporate insolvency resolution processes against Anu Elastics Pvt. Ltd. (Corporate Debtor). The Adjudicating Authority admitted the application, declared a moratorium, and called for names of interim Resolution Professionals. Anu Elastics Pvt. Ltd. appealed, arguing that no notice of the application was served to them. Aggarwal Elastics Pvt. Ltd. claimed notice was served through Dasti, supported by postal receipts and tracking records. The Adjudicating Authority's order indicated that although the notice was reported as not served at the given address, it was deemed sufficient. A letter from Anu Elastics Pvt. Ltd. to

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority's order admitting the application under Section 9 of the …

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

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**Reasoning:** The court found that the Adjudicating Authority's order was passed in violation of the

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**Interpretation:** The interpretation of the law is that proper notice is a mandatory requirement

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**Application:** In this case, the Adjudicating Authority failed to ensure that the appellant

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Respondents:** Anu Elastics Pvt.…; Aggarwal El…

## Timeline

- **2016-06-01 — Letter from Appellant's…**: A letter dated 1st June 2016 was written by a lawyer on behalf of the appellant to the…
- **2017-05-31 — Order Da…**: Learned counsel appearing on behalf of the respondent referred to an order dated 31st…

## 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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