# In the matter of Unitech Machines Karamchari Sangh vs. Vivek Raheja (RP) and Anr.

> NCLAT judgment dated 2025-09-16. Citation: TCN-2025-NCLAT-00476. The appeal was filed by the appellant employee's union under Section 61(1) of the IBC,…

- **Court:** NCLAT
- **Order date:** 16 Sept 2025
- **Citation:** TCN-2025-NCLAT-00476
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/unitech-machines-karamchari-sangh-vs-vivek-raheja-ca763593

## Summary

### Background

The appeal was filed by the appellant employee's union under Section 61(1) of the IBC, challenging the Tribunal's order dated 06.10.2023, which dismissed IA/3780/2021 in IB-937/PB/2018. The IA was related to the layoff notice issued to the workmen of Unitech Machines Ltd. (CD).

## Facts

The appellant, Unitech Machines Karamchari Sangh, filed an appeal against the order dated 06.10.2023 passed by the Adjudicating Authority (NCLT, New Delhi) in I.A/3780/2021 IN IB-937/PB/2018.

The appellant's IA sought to declare the layoff notice dated 01.02.2020 as illegal and arbitrary.

The Corporate Debtor, Unitech Machines Ltd., underwent insolvency proceedings initiated on 01.03.2019.

The Resolution Professional (RP) issued a layoff notice dated 01.02.2020, citing financial constraints and lack of work in the factory.

The appellant challenged the layoff notice by filing a Writ Petition before the Delhi High Court, which was later withdrawn with the liberty to approach the NCLT.

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## Issues and analysis

### Issue 1: Whether the adjudicating authority had the jurisdiction to entertain a challenge to the layoff …

**Ratio:** The adjudicating authority did not have jurisdiction to entertain a challenge to the

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**Reasoning:** The NCLAT held that the adjudicating authority lacked jurisdiction to entertain

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**Interpretation:** The NCLAT interpreted that the challenge to the layoff notice falls under the

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**Application:** The NCLAT applied the principle that the adjudicating authority under IBC

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## Parties

- **Judges:** Rakesh Kuma…; Mohd. Faiz Alam…; +1 more
- **Appellants:** Unitech Machines…
- **Respondents:** Unitech Machines…; Vivek R…; +1 more
- **Advocates:** Swarnendu…; Harshit Kumar…; +8 more

## Timeline

- **2018 — Initiation…**: CIRP initiated against Unitech…
- **2019-03-01 — Order for Ins…**: Order dated 01.03.2019 of Ld. Tribunal passed with regard to the application moved by the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61(1) — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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