# In the matter of Servotech Power Systems Limited (iB)-219-ND-2021

> NCLT judgment dated 2021-07-02. Citation: TCN-2021-NCLT-01865. The case involves a petition filed by Tudor India Pvt. Ltd. (Operational Creditor) under…

- **Court:** NCLT
- **Order date:** 2 Jul 2021
- **Citation:** TCN-2021-NCLT-01865
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/servotech-power-systems-limited-ib-219-nd-2021-46918e63

## Summary

### Background

The case involves a petition filed by Tudor India Pvt. Ltd. (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) against Servotech Power Systems Limited (Corporate Debtor) to initiate the Corporate Insolvency Resolution Process (CIRP). The primary issue revolves around the validity of the demand notice issued by the Operational Creditor, specifically whether it complies with Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, given that the demand notice was sent in Form 3 with annexed invoices.

## Facts

Tudor India Pvt. Ltd. (Operational Creditor) filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against Servotech Power Systems Limited (Corporate Debtor). The Operational Creditor's claim is based on unpaid invoices. The demand notice, dated 22.04.2020, was sent in Form 3, accompanied by invoices. The Corporate Debtor's authorized share capital is Rs. 19,00,00,000/- and paid-up share capital is Rs. 18,31,00,000/-. The petition was first listed before the Adjudicating Authority on 16.04.2021. A query was raised regarding the compliance of the demand notice with Rule 5 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, as it was sent in Form 3 instead of Form 4. The Operational Creditor argued that Section 8

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## Issues and analysis

### Issue 1: Whether the Demand Notice based on invoices sent by the Operational creditor was in compliance of …

**Ratio:** The ratio is that Rule 5(1) of the Insolvency and Bankruptcy (Application to Adjudicating

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**Reasoning:** The court reasoned that the legislature has cast the word 'or' between the options

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**Interpretation:** The interpretation is that Section 8 of the IBC, read with Rule 5, allows the

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**Application:** In this case, the Operational Creditor sent the demand notice in Form 3 and

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## Parties

- **Judges:** Sh. Abni Ranjan…; SH. L. N.…
- **Appellants:** Tudor India Pvt.…
- **Respondents:** Servotech Power…
- **Advocates:** Ramakan…; Yashish C…

## Timeline

- **1986-01-03 — Incorporation of…**: Tudor India Pvt. Ltd. incorporated…
- **2004-01-01 — Incorporation of…**: Servotech Power Systems Limited…

## 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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This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-chandigarh/servotech-power-systems-limited-ib-219-nd-2021-46918e63