K. G. Rajasekaran vs Alectrona Energy Pvt. Ltd
- CitationCompany Appeal (AT) (Insolvency) No. 1332 of 2019
Ratio decidendi
The rule this decision rests on
An application under Section 9 of the Insolvency and Bankruptcy Code, 2016 for initiation of corporate insolvency resolution process may be rejected where the operational creditor fails to place on record any specific document establishing the existence of the debt, and does not disclose the quantum claimed for each head of its alleged dues. A dismissal of an appeal against rejection of a Section 9 application does not bar the applicant from pursuing the same claim before an appropriate forum for appropriate relief, provided the claim is not barred by limitation.
Written by Miss Lucy from the judgment below, not taken from a headnote.
Judgment
As delivered
K. G. Rajasekaran ...Appellant
Vs
Alectrona Energy Pvt. Ltd. ....Respondent
Present: For Appellant: Ms. Promila, Advocate. For Respondent:
ORDER
20.11.2019: The Appellant - 'K. G. Rajasekaran', employee of 'M/s
Alectrona Energy Pvt. Ltd.' filed application under Section 9 of Insolvency and
Bankruptcy Code, 2016 (hereinafter referred to as 'I&B Code') for initiation of
Corporate Insolvency Resolution Process against its Employer - 'M/s Alectrona
Energy Pvt. Ltd.' (Corporate Debtor). The Adjudicating Authority (National
Company Law Tribunal), Division Bench Chennai by impugned order dated
29th July, 2019 rejected the application.
2. Learned counsel for the Appellant submits that the application under
Section 9 was rejected in limine. However, we find that the impugned order
was passed after hearing learned counsel for the parties. It appears that the
Operational Creditor's claim - a sum of Rs.31,66,807/- is payable but no
record produced about existence of debt or default. In reply to Section 8(1)
Notice issued on 6th March, 2018, the Corporate Debtor by its reply dated 16th
March, 2018 pointed out number of days Appellant remained absent and
denials to other claims which was against variable pay, leave travel allowance,
etc. which are not the salary.
-3-
3. Having heard learned counsel for the Appellant we find that there is no
specific document relating to debt brought on record and Appellant has not
disclosed anywhere as to how much he is entitled to claim arrears for the years
2016, 2017, 2018 and 2019 and about leave encashment, variable pay, leave
travel allowance and other reimbursements. We hold that the Adjudicating
Authority rightly rejected the application under 9 being incomplete. However,
we make it clear that the impugned order dated 29th July, 2019 passed by the
Adjudicating Authority (NCLT), Division Bench, Chennai or this Appellate
Tribunal will not come in the way of the Appellant to mover before appropriate
forum for appropriate relief, if the claim is not barred by limitation. The appeal
is dismissed with aforesaid observation.
[Justice S. J. Mukhopadhaya] Chairperson
[Justice Bansi Lal Bhat] Member (Judicial)
[Justice Venugopal M.] Member (Judicial) am/sk
Company Appeal (AT) (Insolvency) No. 1332 of 2019
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