:1: IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J. O.O.C.J. O.O.C.J. NOTICE NOTICE NOTICE OF MOTION NO. 156 OF 2006 OF MOTION NO. 156 OF 2006 OF MOTION NO. 156 OF 2006 IN IN IN NOTICE NOTICE NOTICE NO. N/258 OF 2004 NO. N/258 OF 2004 NO. N/258 OF 2004 Rajendra Electrical Industries Ltd. ...Judgment Creditors. V/s. Kaushik R. Gandhi. ... Judgment Debtor. Mr. P.V. Shah for the Creditors. Mr. Kishor Jain for the Debtor. ..... CORAM CORAM CORAM : DR. D.Y. CHANDRACHUD,J. : DR. D.Y. CHANDRACHUD,J. : DR. D.Y. CHANDRACHUD,J. 28TH 28TH 28TH SEPTEMBER, 2006. SEPTEMBER, 2006. SEPTEMBER, 2006. P.C. P.C. P.C. : : : 1. The Motion is being taken out for setting aside an Insolvency Notice dated 16th October 2004. In the affidavit in support of the Notice of Motion it has been stated that the Insolvency Notice was purported to have been served by substituted service. The Debtor has submitted that he was not served with the Insolvency Notice by substituted mode or otherwise. During the pendency of the proceedings, parties have arrived at Consent Minutes of the Order under which the Debtor has furnished a cheque in the amount of Rs.4.00 lacs to the Petitioning-Debtor. The Consent Terms envisage that upon the encashment of the cheque, the Notice of Motion shall stand absolute. In the event, the cheque is dishonoured and remains unpaid beyond 15th November 2006, the Motion shall stand dismissed and the Insolvency Petition shall stand absolute in terms of Prayer Clauses (a) and (b). :2: 2. The Act of Insolvency is alleged to have been complete upon non-compliance with the requisitions contained in the Insolvency Notice. 3. In the circumstances, a failure to serve the Insolvency Notice would go to the root of the question as to whether the act of Insolvency was complete. Having regard to the averments in the affidavit in support of the Notice of Motion, there is no reason why the Consent Terms which have been signed by the parties should not be taken on the record. The Consent Terms are, accordingly, taken on record and marked as "X. 4. There shall be an order in terms of the Consent Minutes of the Order. -----