# In the matter of Smartcity (Kochi) Infrastructure Pvt. Ltd. Vs. Synergy Property Development Services Pvt. Ltd. and Anr. CA (AT) No. 80-2017

> NCLAT judgment dated 2017-10-12. Citation: TCN-2017-NCLAT-00102. This is a Company Appeal (AT) (Insol.) No. 80 of 2017 arising out of an order dated June 9,…

- **Court:** NCLAT
- **Order date:** 12 Oct 2017
- **Citation:** TCN-2017-NCLAT-00102
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/smartcity-kochi-infrastructure-pvt-ltd-vs-synergy-property-development-services-721e2d7f

## Summary

### Background

This is a Company Appeal (AT) (Insol.) No. 80 of 2017 arising out of an order dated June 9, 2017, passed by the Adjudicating Authority (National Company Law Tribunal), Chennai Bench, Chennai in Company Petition No. 484 (IB)/CB/2017. The appeal was filed by Smartcity (Kochi) Infrastructure Pvt. Ltd. (‘Corporate Debtor’) challenging the order by which the Adjudicating Authority entertained an application under section 9 of the Insolvency and Bankruptcy Code, 2016 (“I&B Code”) preferred by Synergy Property Development Services Pvt. Ltd. (‘Operational Creditor’). The Adjudicating Authority admitted the application, appointed the Interim Resolution Professional, and ordered a moratorium.

## Facts

Smartcity (Kochi) Infrastructure Pvt. Ltd. is the 'Corporate Debtor'. Synergy Property Development Services Pvt. Ltd. is the 'Operational Creditor'. The Adjudicating Authority (National Company Law Tribunal), Chennai Bench, admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by the Operational Creditor against the Corporate Debtor. The Corporate Debtor challenged this order. The notice under Section 8 of the I&B Code was issued by a Law Firm called 'JUSTLAW' on behalf of the Operational Creditor, not directly by the Operational Creditor. The Corporate Debtor contended that this was not in accordance with the law. The Corporate Debtor also claimed that there was a pre-existing dispute, as evidenced by a letter dated November

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## Issues and analysis

### Issue 1: Whether the notice issued by a Law Firm on behalf of the Operational Creditor can be considered a …

**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 decision in “M/s. Uttam Galva Steels

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**Interpretation:** Section 8 of the I&B Code requires the Operational Creditor to issue a

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**Application:** In this case, the notice was issued by the Law Firm ‘JUSTLAW’. There was no

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## Parties

- **Judges:** S.J. Mukhop…; Balvinder…
- **Respondents:** Smartcity (Kochi)…; Synergy Property…

## Timeline

- **2016-11-12 — Dispute R…**: SmartCity (Kochi) Infrastructure Pvt. Ltd. intimated Synergy Property Development…
- **2017-01-07 — Another Notic…**: Another notice was issued in terms of Rule 5 of the Adjudicating Authority Rules, 2016,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 8 — Insolvency resolution by operational creditor](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-8)

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