Service Deemed Complete Once Notice Sent to Last Known Address: NCLT Hyderabad

The NCLT Hyderabad held that dispatch of a demand notice to the guarantor’s last known address constitutes valid service, even if the notice is returned unserved.

Relying on Section 27 of the General Clauses Act,1897 and the terms of the guarantee agreement, the Tribunal observed that once the notice is properly addressed, stamped, and sent, a legal presumption of service arises.

It noted that clauses in guarantee deeds often provide that notices shall be deemed served in the ordinary course of post, regardless of actual receipt.

Accordingly, non-delivery or return of the notice cannot invalidate insolvency proceedings against the guarantor.

[Punjab National Bank v. Kotim Reddy Anitha]