Insolvency Resolution Process admitted as corporate debtor defaulted in paying outgoing employee: NCLT

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  • Last Updated on 2 September, 2021

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Corporate insolvency resolution process

Case details: Baiju Cheriyan v. Southern Investments (P.) Ltd., Chennai - [2021] 129 taxmann.com 219 (NCLT- Chennai )

Judiciary and Counsel Details

    • R. Vardharajan, Judicial Member and Anil Kumar B, Technical Member.
    • C. Suraj, Adv. for the Appellant.

Facts of the Case

In the instant case, the Operational creditor, an employee of the corporate debtor, submitted his resignation to the corporate debtor and sought to be relieved from service. A full and final settlement of Rs. 22.04 lakhs were found to be due.

The said amount was duly approved by the accounts department. However, the Corporate debtor had not disbursed said sum to the operational creditor.

On application, the Deputy Commissioner of Labour had also passed an order and directed the corporate debtor to pay a certain sum with interest. Even after, the Corporate debtor failed to make this payment.

Since from material available on record operational creditor was able to establish existing debt and corporate debtor committed default in paying the operational debt due and payable to operational creditor, CIR petition was to be admitted.

List of Cases Referred to

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