# In the matter of Ebusinessware Private Limited CP (IB) No.573-Chd-Hry-2019

> NCLT judgment dated 2020-05-18. Citation: TCN-2020-NCLT-01351. The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 May 2020
- **Citation:** TCN-2020-NCLT-01351
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/ebusinessware-private-limited-cp-ib-no573-chd-hry-2019-c828fa51

## Summary

### Background

The case pertains to an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Mallesham Jetti (Operational Creditor) against Ebusinessware Private Limited (Corporate Debtor) for initiating the Corporate Insolvency Resolution Process (CIRP). The operational creditor claimed that the corporate debtor failed to pay outstanding dues for consultancy services provided under an agreement dated 01.01.2017. The total amount claimed to be in default was ₹8,16,150/-, including a principal amount of ₹5,70,000/- and interest of ₹2,46,150/- till August 2019.

## Facts

Mallesham Jetti, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Ebusinessware Private Limited, the corporate debtor. The operational creditor provided consultancy services to the corporate debtor based on an agreement dated 01.01.2017. The corporate debtor allegedly failed to pay the accounting and financial service fees. The principal amount outstanding was ₹5,70,000/-, and the total amount claimed, including interest at 18% till August 2019, was ₹8,16,150/-. The operational creditor served a demand notice dated 21.08.2019 to the corporate debtor, which was duly received. The corporate debtor did not comply with the demand notice and did not make any outstanding payment. The operational creditor proposed

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## Issues and analysis

### Issue 1: Whether the demand notice in Form No.3 …

**Ratio:** The demand notice must be served at the correct address of the corporate debtor as per

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**Reasoning:** The court observed that the demand notice dated 21.08.2019 was sent to the address as per

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**Interpretation:** The service of the demand notice is a crucial step in initiating CIRP. The

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**Application:** In this case, the demand notice was sent to the registered office of the

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## Parties

- **Judges:** Ajay Kumar…; Pradeep R.…
- **Appellants:** Mallesham…
- **Respondents:** Ebusinessware…

## Timeline

- **2017-01-01 — Agreement…**: Agreement between Operational Creditor and…
- **2019-08-06 — Demand Noti…**: Operational Creditor sent a demand…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 14 — Moratorium](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-14)

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