Infastructure Leasing And Financial ... vs Union Of India & Ors

IN THE MATTER OF: Basavaiah Chikkanna & Anr. ...Applicants

Versus

Indo Enviro Integrated Solutions Pvt. Ltd. & Ors. ...Respondents

Present: For Applicants : Ms. Pallavi Parma, Advocate.

For Respondents : Ms. Anusha Nagarjan and Ms. Aakanksha Bhola, Advocates for R-1.

WITH

I.A. No. 6109 of 2024 In Company Appeal (AT) No. 346 of 2018

IN THE MATTER OF: Mr. D. Rajeev Joseph ...Applicant

Versus

Indo Enviro Integrated Solutions Limited and Ors. ...Respondents

Present: For Applicant : Ms. Pallavi Parma, Advocate.

For Respondents : Ms. Anusha Nagarjan and Ms. Aakanksha Bhola, Advocates for R-1. ORDER

ASHOK BHUSHAN, J.

I.A. No.378/2024 has been filed by Mr. Basavaiah Chikkanna under

Rule 11 & 31 of the NCLAT Rules, 2016, read with Section 60(5) of the

Insolvency and Bankruptcy Code, 2016 (for short the 'Code' or the 'IBC') in

Comp. App. (AT) No.347/2018. Similarly, I.A. No.6109/2024 has been filed

in Comp. App. (AT) No.346/2018 referring to Rule 11 & 31 of the NCLAT

Rules, 2016 and as well as Section 60(5) of the IBC code.

2. Both the applications arise out of common facts and submissions,

hence it shall be sufficient to refer to the facts in I.A.378/2024, for deciding

both the applications:

i. Applicants in I.A.378/2024, claim to be ex-employees of its erstwhile

IL&FS Environmental and Infrastructure Service Limited (formally

known as IEISL, a group company of IL&FS).

ii. The applicant claimed that there were services were discontinued in the

year 2016 and June 2020.

iii. The IEISL, which was the company under which applicants were

working promised to settle, however, amounts of ₹33,62,511/- are still

due to be payable towards post cut-off date with respect to Applicant

No. 1 and dues of ₹5,51,254/- are due to be payable to Applicant No.2.

iv. The facts indicate that the IEISL were the applicants were working was

resolved under the resolution framework. NCLT Mumbai passed an

I.A. Nos. 378 & 6109 of 2024 in Comp. App. (AT) Nos. 347 & 346 of 2018 2 of 8 order on 02.02.2021, under which the Respondent No.1 Indo Enviro

Integrated Solutions Limited was declared as successful purchaser and

by approval of the NCLT Mumbai dated 02.02.2021, erstwhile IEISL

stood resolved and taken over by Indo Enviro Integrated Solutions

Limited & Ors.

v. In I.A.378/2024, applicant has made following prayers:

"i. Direct the new Company M/s. Indo Enviro Integrated Solutions Limited i.e. the Respondent No. 1 which has purchased the liquidated asset, to release the balance outstanding dues of Rs. 33,62,511/- for the period 15th October 2018 to 20th June 2020 towards the Salary and monthly compensation (i.e. period after cut off date) to the Applicant no.1 within time bound manner; and;

ii. Direct the new Company M/s. Indo Enviro Integrated Solutions Limited to release the outstanding imprest money of Rs. 5,51,254/- as per the AOP, Mysore, Final to the Applicant no.2 within time bound manner; and; iii. Pass any other further order/s which this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the case and in interest of justice."

vi. In I.A.6109/2024, applicant Dr. D. Rajeev Joseph, who claimed to have

been working upto 22.11.2019, tendered his resignation, being

aggrieved that he has not been paid full and final settlement and the

full amount having not been paid. Application I.A.6109/2022 was filed

praying for following reliefs:

"i. Direct the new Company M/s. Indo Enviro Integrated Solutions Limited i.e. the Respondent No. 1 or the Respondent no.2 (as the Gratuity and other employee dues are not the part of liquidated assets), to release the balance outstanding dues of Rs. 6,61,313/- to the Applicant within time bound manner

I.A. Nos. 378 & 6109 of 2024 in Comp. App. (AT) Nos. 347 & 346 of 2018

3 of 8 towards the unpaid Salary, gratuity, leave encashment and dues as per the F&F Statement issued by the IEISL at that time and also, in compliance of the Order dated 02.02.2021 passed by the Hon'ble NCLT. Mumbai Bench in CA no. 1163/2020 in CP No. 3638/MB/2018,; and;

ii. Pass any other further order/s which this Hon'ble Tribunal may deem fit and proper in the facts and circumstances of the case and in interest of justice." vii. Notices were issued in both the applications. Reply has been filed on

behalf of Respondent No. 1, the entity who has been declared successful

entity of the resolution of IEISL.

viii. It is pleaded in the reply that proceeding which has given right to the

application of proceeding initiated the Union of India under Sections

241 & 242 of the Companies Act, 2013 (for short the 'Act') and the NCLT

vide its order dated 02.02.2021 approved, the asset disinvestment

process/sale whereby IEISL was transferred to EverEnviro Resource

Management Private Limited, which is holding company of Respondent

No.1. The name of erstwhile IEISL was changed into Indo Enviro

Integrated Solutions Limited. It is pleaded that the entitlement of the

applicant has already been satisfied and no dues are liable to be paid

by Respondent No. 1.

3. We have heard learned counsel for the applicant as well as learned

counsel for the Respondent No. 1.

4. Learned counsel for the applicant submits that claim of the applicant

is based on AOP and confirmed ledger statements as received from IEISL and

the applicant seek their employment dues in terms of the judgement

I.A. Nos. 378 & 6109 of 2024 in Comp. App. (AT) Nos. 347 & 346 of 2018 4 of 8 02.02.2021 passed by the NCLT Mumbai in C.P. 3638/MB/2018. It is

submitted that application is fully maintainable under Section 60(5) of the

IBC. It is submitted that applicant has not been paid their full amount, hence

applicants haves prayed for direction to Respondent No.1 to pay the balance

and due, which relate to the employment of the applicants. There have been

unauthorised deductions from the payout to the applicants.

5. Learned counsel for the respondent refuting the submissions of the

applicant submits that present application is not maintainable under Section

60(5) of the IBC before this Appellate Tribunal. Applicant if aggrieved were

entitled to file the appropriate application before the NCLT Mumbai in

C.P.3638/2018, wherein the order was passed by NCLT Mumbai dated

02.02.2021, approving the resolution of IEISL. Under the order of the NCLT

02.02.2021, the Respondent No. 1 has under the asset disinvestment

process/sale has taken the entity IEISL after payment of consideration of ₹164

crore. IEISL does not exist anymore and no claim can be raised by the

applicant from Respondent No. 1. After four years of the completion of sale

of IEISL, these applications have been filed which need not be entertained. It

is submitted that whatever dues the applicants were entitled have already

been paid. There is misjoinder of persons and cause of action. No

outstanding dues are payable to the applicant. Application deserves to be

rejected.

6. We have considered the submissions of the counsel for the parties and

perused the records.

I.A. Nos. 378 & 6109 of 2024 in Comp. App. (AT) Nos. 347 & 346 of 2018 5 of 8

7. The applicants who have filed applications were appointed in company,

which were part of the IL&FS group and the applicant claimed that they were

being paid by the IEISL. Under the order of this Tribunal passed in Comp.

App. (AT) Nos. 346/2018 & 347/2018, resolution of IL&FS group companies

commenced and under the resolution framework, the resolution required

approval of the NCLT. After completing the process with regard to resolution

process of IL&FS Environment Infrastructure and Services Limited and

specified environment entity of the applicant group, approval was sought

before the NCLT Mumbai and by order dated 02.02.2021, NCLT Mumbai has

approved the resolution under which on payment of sale consideration the

Indo Enviro Integrated Solutions Limited, Respondent No. 1 was permitted to

acquire the 100% shareholding of the IL&FS Environment Infrastructure and

Services Limited.

8. The grievance raised by the applicant in these applications is that they

have not been paid the dues which were due on the parent employer. IL&FS

Environment Infrastructure and Services Limited (IEISL) for which the

application has been filed. One of the objections raised by the counsel for the

respondent is that approval of resolution of the entity was passed on

02.02.2021 and the Respondent No. 1 after payment of consideration of

Rs.164 crore was declared the new entity after payment of the purchase

consideration, the Respondent No.1, H-1 bidder for IEISL and specified

environmental entities has been approved. Applicant grievance is with regard

to certain non-payment by their erstwhile employer. According to respondent,

I.A. Nos. 378 & 6109 of 2024 in Comp. App. (AT) Nos. 347 & 346 of 2018 6 of 8 whatever dues were required to be paid to the applicants was paid and the

claim of the applicant as raised in the application cannot be entertained before

this appellate Tribunal. The grievance if any of the applicant arose out of the

order dated 02.02.2021 passed by the NCLT Mumbai Bench, Court-I in CA

1163/2020 in C.P. 3368/MB/2018. The remedy, if any, available to the

applicant was to file an appropriate application before the NCLT.

9. We find substance in the objection raised by the respondent. The entity

under which the applicants are claiming their employment and their dues

against erstwhile entity has been resolved with the approval of the NCLT by

order dated 02.02.2021. The grievance, if any, shall arise out of the said order

and appropriate remedy available to the applicant was to file application

before the NCLT in the CA 1163/2020 in C.P. 3638/MB/2018. Section 60(5)

which has been referred to by the applicant in the application could have been

availed before the NCLT Mumbai, where the erstwhile entity in which the

applicants were working has been resolved.

10. We thus are of the view that objections raised by the counsel for the

respondents have substance. The above applications filed by the applicant

need not be entertained by the Appellate Tribunal. Application are disposed

of with liberty to the applicant to raise grievances, if any, in CA 1163/2020 in

C.P. 3638/MB/2018. We make it clear that we have not entered into merits

of the submissions raised by both the parties, and we are not expressing any

opinion in this order. All submissions of the applicants and objections raised

I.A. Nos. 378 & 6109 of 2024 in Comp. App. (AT) Nos. 347 & 346 of 2018 7 of 8 by the respondents to the applications are left open to be considered in

accordance with law.

Both the applications stand disposed of accordingly.

[Justice Ashok Bhushan] Chairperson

[Barun Mitra] Member (Technical) NEW DELHI

2nd May, 2025

himanshu

I.A. Nos. 378 & 6109 of 2024 in Comp. App. (AT) Nos. 347 & 346 of 2018 8 of 8