Bank Of Baroda vs Ratan Singh & Anr

22.10.2019 Having heard learned counsel for the Appellant and being

satisfied with the grounds, the delay of 7 days in preferring the appeal is

condoned.

I.A. No. 3287 of 2019 stands disposed of.

Mr. Ratan Singh, an employee filed an application under Section 9 of the

'Insolvency and Bankruptcy Code, 2016' (for short, 'the I&B Code') for initiation

of 'corporate insolvency resolution process' against 'Theme Export Private

Limited (Corporate Debtor). It has been mentioned that gratuity amount and

salary dues for the month of August, September, October and November, 2018

has not been paid and the partial salary for the twenty days of work in December,

2018 have not been paid. Though the 'Corporate Debtor' appeared but had not

opposed and in the result the Adjudicating Authority (National Company law

Tribunal), New Delhi Bench admitted the application under Section 9 of the 'I&B

Code' on 29th August, 2019. Learned counsel for the Appellant submits that the

application under Section 9 was filed with malicious intent and not for the -2-

purpose of 'Corporate Insolvency Resolution'. Learned counsel further submits

that the 'Corporate Debtor' was not agreeable to pay a meagre sum of

Rs.2,48,000/- and could have settled the matter but the 'Corporate Debtor' but

intentionally had not objected the same as the Appellant has taken the steps

under Section 13(4) of the SARFAESI Act, 2002. Therefore, according to him,

the application under Section 9 was not maintainable.

On hearing the learned counsel for the Appellant we find that the Bank

has already ceased the account having declared the 'Corporate Debtor' as 'Non-

Performing Assets'. It was for a said reason, the employee could not be paid.

In the facts and circumstances, we are not inclined to accept the

submission that 1st Respondent filed the application with malicious intent or in

collusion with the 'Corporate Debtor'.

The appeal is accordingly dismissed. No costs.

[Justice S.J. Mukhopadhaya] Chairperson

[ Justice A.I.S. Cheema ] Member (Judicial)

[ Kanthi Narahari ] Member (Technical) /ns/sk

Company Appeal (AT) (Insolvency) No. 1104 of 2019