# In the matter of Gourav Kishor Shinde Vs. Uday Yashwant Nayak and Anr. CA(AT)(Ins) No. 1107 of 2019

> NCLAT judgment dated 2020-03-16. Citation: TCN-2020-NCLAT-00293. This case involves an appeal against an order passed by the Adjudicating Authority (National…

- **Court:** NCLAT
- **Order date:** 16 Mar 2020
- **Citation:** TCN-2020-NCLAT-00293
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/gourav-kishor-shinde-vs-uday-yashwant-nayak-and-anr-ca-5b05f13c

## Summary

### Background

This case involves an appeal against an order passed by the Adjudicating Authority (National Company Law Tribunal, Mumbai Bench) admitting an application under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC). The application was filed by Uday Yashwant Nayak (Operational Creditor) against Godawat Consumer Product LLP (Corporate Debtor) for unpaid dues related to his employment as Head of Sales and Marketing. The Corporate Debtor argued that there was a pre-existing dispute regarding the dues and the Operational Creditor's resignation formalities.

## Facts

Uday Yashwant Nayak, the Operational Creditor, was employed as Head of Sales and Marketing at Godawat Consumer Product LLP, the Corporate Debtor. He resigned on March 11, 2017, and claimed unpaid dues including salary, incentives, and liquidated damages. The Corporate Debtor argued that the Operational Creditor did not comply with the required resignation formalities, including obtaining field NOCs and handing over charge. The Operational Creditor filed an application under Section 9 of the IBC, which was admitted by the Adjudicating Authority. The Corporate Debtor claimed that the Notice period was required to be of two months and the Operational Creditor served only 1 month 5 days period and that Corporate Debtor was not liable to make payments as claimed. The

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was justified in admitting the application under Section 9 of …

**Ratio:** The existence of a pre-existing dispute is a bar to the admission of an application under

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**Reasoning:** The court found that there were pre-existing disputes between the parties regarding the

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**Interpretation:** The court interpreted the provisions of Section 9 of the IBC to require the

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**Application:** In this case, the court found that the disputes between the Operational

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## Parties

- **Judges:** A.I.S. C…; KanthiNar…
- **Appellants:** Gourav Kishor…
- **Respondents:** Godawat Consumer…; Uday Yashwant…

## Timeline

- **2017-03-11 — Operational Creditor's…**: Uday Yashwant Nayak, the Operational Creditor, submitted his resignation from Godawat…
- **2017-04-15 — Exchange of…**: Emails were exchanged between the Operational Creditor and the Corporate Debtor regarding…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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