# In the matter of Dilip Singh Vs. Nuvoco Vistas Corporation Ltd. & Anr. CA (AT) (Insolvency) No. 484-2018

> NCLAT judgment dated 2018-09-10. Citation: TCN-2018-NCLAT-00119. This case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 10 Sept 2018
- **Citation:** TCN-2018-NCLAT-00119
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/dilip-singh-vs-nuvoco-vistas-corporation-ltd-anr-ca-cf6efe51

## Summary

### Background

This case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal), New Delhi, which admitted an application preferred by the Respondent, Nuvoco Vistas Corporation Ltd., under Section 9 of the Insolvency and Bankruptcy Code, 2016 ('I&B Code'). The appeal was filed by a Shareholder and Ex-Director of M/s Soho Infrastructure Pvt. Ltd., the Corporate Debtor. The appellant contended that no demand notice under Section 8(1) of the I&B Code was served on the Corporate Debtor. The Adjudicating Authority admitted the application despite this fact.

## Facts

M/s Soho Infrastructure Pvt. Ltd. is the Corporate Debtor. Nuvoco Vistas Corporation Ltd. is the Operational Creditor. The Adjudicating Authority (National Company Law Tribunal), New Delhi, admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the Operational Creditor. A Shareholder and Ex-Director of the Corporate Debtor filed an appeal against this order. The Appellant claimed that no demand notice under Section 8(1) of the I&B Code was served on the Corporate Debtor. The Adjudicating Authority admitted the application despite the lack of service. The parties negotiated a settlement, and the Appellant paid the amount due to the Respondent. The payment was made by draft dated 27th August, 2018. The key fact is that the

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## Issues and analysis

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

**Ratio:** The service of a demand notice under Section 8(1) of the I&B Code is a mandatory

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**Reasoning:** The court reasoned that the Adjudicating Authority failed to consider the evidence

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**Interpretation:** Section 8(1) of the I&B Code is interpreted as imposing a strict

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**Application:** In this case, the court applied the ratio by finding that the Adjudicating

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…
- **Appellants:** Dilip S…
- **Respondents:** M/s Soho Infrastru…; Nuvoco Vistas…
- **Advocates:** C.S. G…; Krit…; +2 more

## Timeline

- **2018-06-14 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), New Delhi, passed an order…
- **2018-08-27 — Matter Ta…**: Learned counsel for the Appellant submitted that if the demand notice under Section 8(1)…

## 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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