# In the matter of Sumit Aggarwal Vs. Silvertoan Papers Ltd. & Ors. CA(AT)(Insolvency) 308 & 309-2019

> NCLAT judgment dated 17 Sept 2019. Citation: TCN-2019-NCLAT-00274. The appeals were filed by the Director/Shareholder of BBF Home Care Products Limited…

- **Court:** NCLAT
- **Order date:** 17 Sept 2019
- **Citation:** TCN-2019-NCLAT-00274
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/sumit-aggarwal-vs-silvertoan-papers-ltd-ors-ca-a0e636d8

## Summary

### Background

The appeals were filed by the Director/Shareholder of BBF Home Care Products Limited against the judgment dated February 18, 2019, and order dated February 22, 2019, passed by the Adjudicating Authority (NCLT), Chandigarh Bench. The Adjudicating Authority had admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Silvertoan Paper Limited (Operational Creditor) against BBF Home Care Products Limited (Corporate Debtor). Subsequently, the Adjudicating Authority issued an order of moratorium and appointed an Interim Resolution Professional. The appellant contended that these orders were passed ex parte without adequate notice or hearing the Corporate Debtor.

## Facts

The appeals were filed by the Director/Shareholder of BBF Home Care Products Limited against the judgment dated February 18, 2019, and order dated February 22, 2019, passed by the Adjudicating Authority (NCLT), Chandigarh Bench. The NCLT had admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Silvertoan Paper Limited (Operational Creditor) against the Corporate Debtor. Subsequently, the Adjudicating Authority passed an order of moratorium and appointed an Interim Resolution Professional.

## Issues and analysis

### Issue 1: Whether the impugned judgment and order were passed ex parte without adequate notice to the…

**Ratio:** An ex parte order is valid if proper attempts at service were made and documented, and if…

**Reasoning:** The appellant contended that the Adjudicating Authority passed the orders ex parte…

**Interpretation:** The court interpreted the process of notice and service under the IBC, holding…

**Application:** In this case, the demand notice was issued on October 15, 2018, and service was…

## Parties

- **Judges:** S.J. Mukhop…
- **Advocates:** For Appel…; Gautam Singh,…; +7 more

## Timeline

- **October 9, 2017 — First Section 9…**: Operational Creditor filed CP(IB) No. 92/Chd/Pb/2017, which was later withdrawn on…
- **October 24, 2017 — First Section 9…**: CP(IB) No. 92/Chd/Pb/2017 was withdrawn for non-mentioning of 'NCLT' and 'IBC' in…

## 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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