NCLAT : Under IBC, it is obligatory to give notice to the Applicant to rectify the defect in the Sec 9 Application, within seven days from the date of receipt of such notice :
The Appellant filed Application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (hereinafter referred to as the “IBC”) with the NCLT and on the first date of hearing of the Application under Section 9, the Adjudicating Authority dismissed the Application as defective.
Aggrieved by the order, the Appellant preferred an Appeal with NCLAT.
The NCLAT set aside the impugned order and revived the Section 9 Application filed by the Appellant before the Adjudicating Authority.
“ 19. …… When the Adjudicating Authority has proceeded to dismiss the Application as defective, it was obligatory as per Proviso to Section 9, sub-section (ii) to give a notice to the Applicant to rectify the defect in the Application within seven days from the date of receipt of such notice. The Adjudicating Authority having not issued a notice under Proviso, the order impugned is unsustainable on this ground alone.”
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