VISA COKE LIMITED versus M/S MESCO KALINGA STEEL LIMITED

VISA COKE LIMITED versus M/S MESCO KALINGA STEEL LIMITED

Notice delivered in Form 3 to the Key Managerial Personnel at the corporate debtor's registered office in their official capacities, and which on its face calls upon the corporate debtor to pay the unpaid operational debt, must be construed as service on the corporate debtor under Section 8 of the IBC; therefore the NCLT and NCLAT erred in rejecting the Section 9 petition solely on the technical ground that the notice was addressed to KMP; the matter is remanded to the NCLT to decide the Section 9 petition afresh on merits including issues of date of default and alleged novation.

Parties
Operational Creditor / Appellant: Visa Coke Limited; Corporate Debtor / Respondent: M/s Mesco Kalinga Steel Limited
Jurisdiction
India
Judgment Date
29 April 2025
Procedural Posture
Civil Appeal No. 357 of 2025 / Final Judgment on Appeal (29 April 2025)
Outcome
Appeal allowed; orders of the NCLT and the NCLAT set aside; matter remanded to the NCLT to decide the Section 9 petition afresh on merits
Legal Topics
Service of Statutory Demand Notice, Section 8 IBC, Section 9 IBC, Key Managerial Personnel, Deemed Service, Date of Default, Novation of Contract
Insolvency and Bankruptcy Law Company Law Service of Statutory Demand Notice Section 8 IBC Section 9 IBC Key Managerial Personnel Deemed Service Date of Default +1 more

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Parties

Visa Coke Limited

Operational Creditor / Appellant

M/s Mesco Kalinga Steel Limited

Corporate Debtor / Respondent

Procedural Posture

Civil Appeal No. 357 of 2025 / Final Judgment on Appeal (29 April 2025)

Legal Issues

  1. 1 Whether a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 served on Key Managerial Personnel at the corporate debtor's registered office constitutes valid service on the corporate debtor
  2. 2 Whether the Section 9 petition is maintainable where such notice was so served
  3. 3 Whether the date of default alleged by the operational creditor is established and whether there was novation of the contract

Ratio Decidendi

Notice delivered in Form 3 to the Key Managerial Personnel at the corporate debtor's registered office in their official capacities, and which on its face calls upon the corporate debtor to pay the unpaid operational debt, must be construed as service on the corporate debtor under Section 8 of the IBC; therefore the NCLT and NCLAT erred in rejecting the Section 9 petition solely on the technical ground that the notice was addressed to KMP; the matter is remanded to the NCLT to decide the Section 9 petition afresh on merits including issues of date of default and alleged novation.

Court Disposition

Appeal allowed; orders of the NCLT and the NCLAT set aside; matter remanded to the NCLT to decide the Section 9 petition afresh on merits

Orders

  • Appeal allowed
  • Order dated 03.10.2024 of the NCLAT set aside