# In the matter of Icoat Projects Pvt. Ltd. CP (IB) No. 157-9-HDB-2021

> NCLT judgment dated 2022-03-23. Citation: TCN-2022-NCLT-03579. The case originates from a petition filed by Aeruva Naga Mallikarjuna, an Operational Creditor,…

- **Court:** NCLT
- **Order date:** 23 Mar 2022
- **Citation:** TCN-2022-NCLT-03579
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/icoat-projects-pvt-ltd-cp-ib-no-157-9-hdb-2021-a6cbcdb4

## Summary

### Background

The case originates from a petition filed by Aeruva Naga Mallikarjuna, an Operational Creditor, against Icoat Projects Pvt Ltd, the Corporate Debtor, under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. The Operational Creditor claimed a principal amount of Rs. 1,21,52,012 as of 02.01.2021, along with interest at 24% per annum, was due and payable by the Corporate Debtor. The petition sought the initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor.

## Facts

Aeruva Naga Mallikarjuna, an Operational Creditor, filed a petition against Icoat Projects Pvt Ltd, the Corporate Debtor, under Section 9 of the IBC, 2016. The Operational Creditor claimed that a principal amount of Rs. 1,21,52,012 was due as of 02.01.2021, plus interest at 24% per annum. The Operational Creditor is a contractor who executed work for the Corporate Debtor, including providing central and high mast LED lighting, constructing major drains, a modern market, an auditorium, mini auditoriums, and developing a dumping yard and parks in Dornakal Municipality. The Operational Creditor raised invoices for the work. The date of default was claimed to be 20.03.2020, the date of the first invoice. The Operational Creditor convened a meeting on 06.02.2021, to demand

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## Issues and analysis

### Issue 1: Whether in view of Section 27 of the General Clauses Act, 1897 and in light of the decision of the …

**Ratio:** Section 27 of the General Clauses Act, 1897, states that service is deemed to be effected

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**Reasoning:** The Tribunal noted that the demand notices were returned unclaimed. However, based on

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**Interpretation:** Section 27 of the General Clauses Act provides a legal presumption of service

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**Application:** In this case, the Corporate Debtor did not appear before the Tribunal to

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## Parties

- **Judges:** Venkata Ramakrishn…; Veera Brahma Rao…
- **Appellants:** Aeruva Naga…
- **Respondents:** Icoat Projects…

## Timeline

- **2020-03-20 — Date of D…**: Claimed date of default, corresponding…
- **2021-01-02 — Principal Amo…**: Principal amount of Rs. 1,21,52,012…

## 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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