NCLT HAS RULED BOTH IN FAVOUR AND AGAINST THE EMPLOYEES WHO TRIED TO INITIATE CIRP UNDER IBC 2016 AGAINST THEIR EMPLOYERS

NCLT HAS RULED BOTH IN FAVOUR AND AGAINST THE EMPLOYEES WHO TRIED TO INITIATE CIRP UNDER IBC 2016 AGAINST THEIR EMPLOYERS 

CASES IN FAVOUR OF EMPLOYEES 

NCLT ruling in favour of employees is also held in the following cases:

1.Aruna Hotels v Employees of Aruna Hotels - Where NCLT Chennai held that initiation of CIRP (Corporate Insolvency Resolution Process)  for dues of employees as OC (Operational Creditor) is valid .

2. Nitin Gupta (Operational Creditors – Employee of the Company) Vs Applied Electro Magnetic Private Limited- NCLT held that the Petition u/s 9 of IBC, 2016 in the matter. The Court was satisfied that the present application is complete & there has been part admission of the salary dues & non-payment of the same has caused default by the respondent

CASES AGAINST EMPLOYEES 

NCLT Ruling against the employee or employees pleading to initiate CIRP against his employer failed in the following cases.

1.However , in KKV Nagaprasad v Lanco Infartech Ltd, an unpaid employee attempt to initiate CIRP failed. In this case , NCLT held that   employee did not show his bonafide to the Tribunal. Employee failed to demonstrate that the debt was indeed due and payable. 

2.S N singh vs Tayo Rolls Ltd ,  NCLT Calcutta has held that 284 employees of operational debtors cannot file one petition as  joint petitions by more than one creditors cannot filed under Section 9 of IBC Code.