The Supreme Court on Tuesday (April 29) upheld the delivery of a demand notice under Section 8 of the Insolvency and Bankruptcy Code, 2016 (“IBC”) to the corporate debtor’s Key Managerial Personnel (KMP), stating that the delivery of the notice to the KMP substantially complies with the requirement of Section 8 of IBC.
Setting aside the National Company Law Appellate Tribunal (NCLAT) ruling, the bench of Justices JB Pardiwala and R Mahadevan allowed the Operational Creditor’s appeal, stating that delivery of the demand notice to the corporate debtor’s KMP constitutes deemed service of the notice.
The judgment authored by Justice Mahadevan observed that, since the Respondent-Corporate Debtor failed to demonstrate any prejudice…
