# In the matter of Ashish Gupta vs. Delagua Health India Pvt. Ltd. & Ors. Company Appeal (AT) (Ins.) No. 17 of 2022

> NCLAT judgment dated 2023-02-01. Citation: TCN-2023-NCLAT-00753. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, by the…

- **Court:** NCLAT
- **Order date:** 1 Feb 2023
- **Citation:** TCN-2023-NCLAT-00753
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/ashish-gupta-vs-delagua-health-india-pvt-ltd-ors-company-appeal-2eab7479

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code, 2016, by the Appellant against the Adjudicating Authority's order dated 11.10.2021, which rejected the Appellant's Section 9 application. The Appellant, an Operational Creditor, claimed unpaid salary from Delagua Health India Pvt. Ltd./Corporate Debtor ("DHIPL"). The Adjudicating Authority dismissed the petition, deeming it collusive.

## Facts

Ashish Gupta, the Appellant, filed an application under Section 9 of the IBC claiming unpaid salary from Delagua Health India Pvt. Ltd. ("DHIPL"), the Corporate Debtor. Gupta served as a Director of DHIPL from 11.02.2014 and resigned on 02.07.2017. He claimed unpaid salary from January 2016 to June 2017, amounting to Rs.40,50,000/-, which fell due on 30.06.2017. A demand notice was sent on 15.06.2019. The Corporate Debtor/Respondent No. 1 did not appear before the Adjudicating Authority. Delagua Health Limited (Grand Bahamas)/Respondent No. 2 and Delagua Water Testing Limited/Respondent No. 3, holding 98.98% stake in the Corporate Debtor, filed an intervention application. The Adjudicating Authority dismissed the Section 9 petition, holding it to be

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## Issues and analysis

### Issue 1: Whether the Section 9 petition filed before the …

**Ratio:** The principle that the Adjudicating Authority should not commit any mistake in observing

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**Reasoning:** The Adjudicating Authority observed connivance between the Appellant and KKV, who,

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**Interpretation:** The court interpreted the actions of the Appellant and KKV as indicative of a

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**Application:** The court applied the principle to the facts, finding that the Appellant's

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## Parties

- **Judges:** Barun M…
- **Appellants:** Ashish…
- **Respondents:** Delagua Health…
- **Advocates:** Nilotpal…; Swati D…; +3 more

## Timeline

- **2013-11-04 — Consultancy A…**: Consultancy Agreement signed between…
- **2014-02-11 — Incorporation…**: Delagua Health India Pvt.…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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