# In the matter of Tejinder Pal Setia vs. Kone Elevator India Pvt. Ltd. and Ors. I.A. No. 1122, 1124 & 1167 of 2023 in Company Appeal (AT) (Insolvency) No. 262 of 2023

> NCLAT judgment dated 2023-07-04. Citation: TCN-2023-NCLAT-00410. The appeal was filed by the Suspended Director of the Corporate Debtor challenging the…

- **Court:** NCLAT
- **Order date:** 4 Jul 2023
- **Citation:** TCN-2023-NCLAT-00410
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/tejinder-pal-setia-vs-kone-elevator-india-pvt-ltd-and-ors-ia-no-1122-1124-1167-o-db354204

## Summary

### Background

The appeal was filed by the Suspended Director of the Corporate Debtor challenging the Adjudicating Authority's order dated February 27, 2023, which admitted a Section 9 application filed by the Operational Creditor, Kone Elevator India Pvt. Ltd. The Corporate Debtor had defaulted on payments for elevator supply and installation, and subsequently breached a settlement agreement.

## Facts

The Operational Creditor, Kone Elevator India Pvt. Ltd., is in the business of manufacturing, installing, and servicing lifts. Future Colonizer and Construction Pvt. Ltd. ( FCCPT ) initially approached the Operational Creditor for the supply and installation of Kone elevators for its project site in Mohali, Punjab. An agreement was signed on February 5, 2013 , between the Operational Creditor and FCCPT for this purpose. On July 12, 2013 , the Corporate Debtor acknowledged the dues of the Operational Creditor, assuring payment of Rs.71,10,000/-. The project was later re-christened, and a fresh contract was executed on March 14, 2015 , between the Corporate Debtor and the Operational Creditor. However, the Corporate Debtor failed to pay the dues, and three cheques issued

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## Issues and analysis

### Issue 1: Whether the Demand Notice dated October 15, 2018, …

**Ratio:** A demand notice is deemed properly served if evidence of dispatch to the registered

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**Reasoning:** The Operational Creditor filed original postal receipts and a service report from the

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**Interpretation:** The court interpreted the evidence of dispatch and the acknowledgment in the

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**Application:** The NCLAT applied this interpretation to the facts, concluding that the Demand

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## Parties

- **Judges:** Ashok Bh…; Barun M…
- **Appellants:** Tejinder Pa…
- **Respondents:** Kone Elevator…
- **Advocates:** For the Appellant:…; Prakhar M…; +10 more

## Timeline

- **February 5, 2013 — Initial Agr…**: An agreement was entered into between the Operational Creditor and Future Colonizer and…
- **July 12, 2013 — Corporate Debtor…**: Corporate Debtor Company wrote a letter acknowledging the dues of the Operational…

## 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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