# In the matter of Sparta Global Projects Pvt. Ltd. Vs.
KUGD Services Pvt. Ltd. Company Appeal (AT) (Insolvency) No. 341 of 2022

> NCLAT judgment dated 2022-07-21. Citation: TCN-2022-NCLAT-00335. The appeal was filed against the order dated 21st February 2022, where the application filed…

- **Court:** NCLAT
- **Order date:** 21 Jul 2022
- **Citation:** TCN-2022-NCLAT-00335
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sparta-global-projects-pvt-ltd-vs-kugd-services-pvt-ltd-company-appeal-62b326e8

## Summary

### Background

The appeal was filed against the order dated 21st February 2022, where the application filed by the appellant under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) was rejected. The rejection was based on the appellant's failure to serve a Demand Notice under Section 8 of the Code and the notices issued by the Adjudicating Authority. The appellant contended that the notice was served via email to the Director of the Corporate Debtor and that the Master Data of the Corporate Debtor was filed with the application.

## Facts

Sparta Global Projects Pvt. Ltd. filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Adjudicating Authority rejected the application because Sparta Global Projects Pvt. Ltd. failed to serve a Demand Notice under Section 8 of the Code and the notices issued by the Adjudicating Authority. Sparta Global Projects Pvt. Ltd. appealed this decision, arguing that the notice was served via email and that the Master Data of the Corporate Debtor was filed with the application. Notices were issued to KUGD Services Pvt. Ltd., the respondent, and the appellant provided evidence of newspaper publications. KUGD Services Pvt. Ltd. did not appear before the Adjudicating Authority or the Tribunal. The appellant argued that the email ID on which the

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## Issues and analysis

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

**Ratio:** The rejection of an application under Section 9 of the IBC is erroneous if the applicant

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**Reasoning:** The Tribunal found that the Adjudicating Authority's rejection was based on an incorrect

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**Interpretation:** Section 9 of the IBC requires an operational creditor to follow specific

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**Application:** In this case, the Tribunal determined that the appellant had substantially

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## Parties

- **Judges:** Ashok Bh…; M. Satyanarayana…; +1 more
- **Appellants:** Sparta Global…
- **Respondents:** KUGD Services…

## Timeline

- **2022-02-21 — Order Da…**: The Adjudicating Authority passed an order rejecting the application filed by the…
- **2022-04-01 — Notice to Res…**: Notices were issued to the…

## 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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