Landmark Judgements by the Hon’ble NCLAT (1st to 15th November, 2020)
In Rajendra Bhai Panchal v. M/s Jay Manak Steels,
It was held that mere mistake in the demand notice under section 8 of the Code would not render such notice defective, and if the Corporate Debtor were to question the validity of the demand, the burden would lie on the Corporate Debtor to show that it was adversely affected by the mistake. It was further held that the mere fact of quantum of debt being mis-stated would not ipso facto render that decision defective, as long as the minimum satisfactory figure is owed since it is not the burden of the Adjudicating Authority to determine the quantum of debt. NCLAT clarified that, in such scenarios, the Court would only invalidate the notice if injustice is caused to the debtor if the failure to interfere would cause injustice to the debtor. The Appeal filed by the Appellant (Ex-Director & Shareholder of Corporate Debtor), against NCLT Ahmedabad Bench order dated 03.06.2020 admitting the application under section 9, was dismissed.