# In the matter of Aircel Employees Representatives Vs. Dishnet Wireless Limited & Aircel Limited Company Appeal (AT) (Insolvency) No. 730 & 731- 2018

> NCLAT judgment dated 2019-03-07. Citation: TCN-2019-NCLAT-00738. The case involves two company appeals (AT) (Insolvency) No. 730 of 2018 and No. 731 of 2018…

- **Court:** NCLAT
- **Order date:** 7 Mar 2019
- **Citation:** TCN-2019-NCLAT-00738
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/aircel-employees-representatives-vs-dishnet-wireless-limited-aircel-limited-comp-b701145e

## Summary

### Background

The case involves two company appeals (AT) (Insolvency) No. 730 of 2018 and No. 731 of 2018 before the National Company Law Appellate Tribunal, New Delhi. The appeals were filed by Aircel Employees Representatives (AER) against Dishnet Wireless Limited and Aircel Limited, respectively. The core issue revolves around the non-payment of salaries to the working employees during the Corporate Insolvency Resolution Process (CIRP) initiated against both Dishnet Wireless Limited and Aircel Limited. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, had previously addressed the matter in September 2018, concerning the release of salary to the employees of the respective Corporate Debtors during the CIRP.

## Facts

Two separate Corporate Insolvency Resolution Processes (CIRP) were initiated against ‘Dishnet Wireless Limited' and ‘Aircel Limited'. The Aircel Employees Representatives (AER) filed appeals against both companies due to non-payment of salaries to the working employees during the CIRP. The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, addressed the matter in September 2018, concerning salary release. The Resolution Professional expressed difficulty in arranging funds for salary payments. The Adjudicating Authority directed the Resolution Professional to provide a list of employees with their details. Funds were released following Supreme Court directions, and salaries were paid up to January 2019. Salaries were paid up to February 2019.

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## Issues and analysis

### Issue 1: Whether the employees are entitled to receive their outstanding salaries and allowances, including …

**Ratio:** The principle is that employees are entitled to their rightful dues, including salaries

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**Reasoning:** The court acknowledges that employees have a right to their salaries and allowances.

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**Interpretation:** This issue involves interpreting the rights of employees under labor laws in

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**Application:** In this specific case, the court acknowledges the employees' entitlement but

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## Parties

- **Judges:** S.J. Mukhop…; A.I.S. C…
- **Appellants:** Aircel Employees'…
- **Respondents:** Dishnet Wireless…

## Timeline

- **2018-09-01 — Adjudicating Authority…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, Mumbai, hears…
- **2018-10-16 — Impugned…**: The Adjudicating Authority disposes of the application with directions to place on record…

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