# In the matter of Mass Metals Pvt. Ltd. Vs. Sunflag Iron & Steel Co. Ltd. CA (AT) No. 112-2017

> NCLAT judgment dated 2017-09-22. Citation: TCN-2017-NCLAT-00112. The appellant, Mass Metals Pvt. Ltd., challenged an order dated May 24, 2017, passed by the…

- **Court:** NCLAT
- **Order date:** 22 Sept 2017
- **Citation:** TCN-2017-NCLAT-00112
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mass-metals-pvt-ltd-vs-sunflag-iron-steel-co-ltd-ca-0f922c85

## Summary

### Background

The appellant, Mass Metals Pvt. Ltd., challenged an order dated May 24, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Principal Bench, New Delhi, in CP No.16/2017. The Adjudicating Authority treated a Transfer Petition under Section 434 (1)(a) as a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (I&B Code), admitted the application, initiated Corporate Insolvency Resolution Process, declared a moratorium, and appointed an Interim Resolution Professional.

## Facts

Mass Metals Pvt. Ltd. (Appellant) challenged an order by the Adjudicating Authority (NCLT) that initiated Corporate Insolvency Resolution Process (CIRP) based on a petition by Sunflag Iron & Steel Co. Ltd. (Respondent). The Adjudicating Authority treated a transfer petition as a Section 9 application under the Insolvency and Bankruptcy Code (IBC). A key fact is that the notice under Section 8 of the IBC was issued by an advocate/lawyer on behalf of the respondent, not directly by the operational creditor. The appellant argued that this notice was invalid. The respondent claimed a notice was issued, but the appellant contended no separate notice was issued by the Adjudicating Authority. The Adjudicating Authority order was passed on May 24, 2017. The appellant also

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## Issues and analysis

### Issue 1: Whether a notice issued under Section 8 of the Insolvency and Bankruptcy Code, 2016 by an …

**Ratio:** An Operational Creditor can apply himself or through a person authorized to act on behalf

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**Reasoning:** The Appellate Tribunal relied on its previous judgment in “Uttam Galva Steels Limited vs.

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**Interpretation:** Section 8 of the I&B Code requires the Operational Creditor or a person

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**Application:** In this case, the notice was issued by an advocate/lawyer who was not

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…; +1 more
- **Respondents:** Mass Metals Pvt.…; Sunflag Iron &…

## Timeline

- **2017-05-24 — Impugned…**: The Adjudicating Authority passed an order initiating Corporate Insolvency Resolution…
- **2017-07-25 — Counsel Sub…**: Counsel for the corporate debtor made submissions regarding the lack of separate notice…

## 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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