# In the matter of Era Labourer Union of Sidcul, Pant Nagar, through its secretary vs. Apex Buildsys Ltd.

> NCLAT judgment dated 2024-09-20. Citation: TCN-2024-NCLAT-00186. This Company Appeal (AT) (Insolvency) No. 1572 of 2024 was filed by Era Labourer Union of…

- **Court:** NCLAT
- **Order date:** 20 Sept 2024
- **Citation:** TCN-2024-NCLAT-00186
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/era-labourer-union-of-sidcul-pant-nagar-through-its-secretary-vs-apex-buildsys-l-6bed6a29

## Summary

### Background

This Company Appeal (AT) (Insolvency) No. 1572 of 2024 was filed by Era Labourer Union of Sidcul, Pant Nagar, challenging the order dated 02.04.2024 passed by the Adjudicating Authority (National Company Law Tribunal), Court-V, New Delhi, which disposed of IA No. 2545 of 2021. The appeal arises from a dispute regarding the closure of a factory owned by Apex Buildsys Limited and the subsequent claims of the appellant's members for wages and bonus.

## Facts

Apex Buildsys Limited had a factory in Pant Nagar, Uttarakhand, which closed production in February 2017. A transfer letter dated 2017-06-20 was issued to workmen transferring them to Nagpur Plant w.e.f. 2017-07-01. A lockout was declared on 2017-07-31 under the Uttar Pradesh Industrial Disputes Act, 1947. The Appellant filed a W.P. in the High Court of Uttarakhand at Nainital, which was disposed of on 2017-10-05. The Secretary, Labour Department issued a letter dated 2018-02-02. ICICI Bank Limited filed an application under Section 7, and CIRP commenced against the Corporate Debtor on 2018-08-20. The Appellant filed a Writ Petition challenging the order. Both Writ Petitions were disposed of by the High Court on 2019-04-27. The Appellant filed a claim in Form E on

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## Issues and analysis

### Issue 1: Whether the NCLT has jurisdiction to adjudicate on the validity of the closure notice dated …

**Ratio:** The NCLT's jurisdiction under Section 60(5)(c) of the IBC is limited to matters arising

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**Reasoning:** The tribunal relies on the judgments of the Supreme Court in "Gujarat Urja Vikas

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**Interpretation:** Section 60(5)(c) of the IBC provides the NCLT with a wide discretion to

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**Application:** In this case, the closure notice was issued prior to the commencement of the

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## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Era Labourer…
- **Respondents:** Apex Builds…

## Timeline

- **2017-02-01 — Factory C…**: Production of factory at…
- **2017-06-20 — Transfer Lette…**: Corporate Debtor issued a transfer letter to workmen transferring their services to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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