# In the matter of Vishal Sethi vs. Colage Group Infrastructure Pvt. Ltd.

> NCLAT judgment dated 2024-03-20. Citation: TCN-2024-NCLAT-00569. The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code 2016 by Vishal…

- **Court:** NCLAT
- **Order date:** 20 Mar 2024
- **Citation:** TCN-2024-NCLAT-00569
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/vishal-sethi-vs-colage-group-infrastructure-pvt-ltd-c5101510

## Summary

### Background

The appeal was filed under Section 61 of the Insolvency and Bankruptcy Code 2016 by Vishal Sethi (Appellant) against the order dated 02.03.2023 passed by the Adjudicating Authority (National Company Law Tribunal, New Delhi Bench, Court-III) in CP(IB) No.1108/ND/2019. The Adjudicating Authority had dismissed the Section 9 petition filed by the Appellant, who sought to initiate Corporate Insolvency Resolution Proceedings (CIRP) against Collage Group Infrastructure Pvt. Ltd. (Corporate Debtor). The Appellant claimed to be an operational creditor, alleging non-payment of salary dues.

## Facts

Vishal Sethi (Appellant) claimed to be an operational creditor of Collage Group Infrastructure Pvt. Ltd. (Corporate Debtor). The Appellant was appointed as General Manager of the Corporate Debtor on 10.10.2014. The Corporate Debtor allegedly failed to make timely salary payments from 2015 onwards. The Appellant resigned on 26.01.2016 and sent an email to the Corporate Debtor indicating the balance of his arrear salary. The Corporate Debtor provided a full and final settlement statement admitting an outstanding amount of Rs. 9,28,972/-. The Corporate Debtor made limited part payments, but some cheques were dishonoured. The Appellant sent a Section 8 demand notice on 06.03.2019. A Section 9 IBC application was filed on 30.04.2019 for a default of Rs.9,97,747/-. A

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the Section 9 application filed by the …

**Ratio:** The ratio is based on the principle that a Section 9 application can only be admitted if

…

**Reasoning:** The NCLAT agreed with the Adjudicating Authority's findings, noting that the legal

…

**Interpretation:** The interpretation is that the existence of a pre-existing dispute bars the

…

**Application:** The ratio and reasoning apply to the facts of the case because the NCLAT found

…

## Parties

- **Judges:** Ashok Bh…; Barun M…; +1 more
- **Appellants:** Vishal…
- **Respondents:** Collage Group…; M/s Collage Group…

## Timeline

- **2014-10-10 — Appointment of…**: Vishal Sethi (Appellant) was appointed as General Manager of Collage Group Infrastructure…
- **2015-01-01 — Salary Paymen…**: The Corporate Debtor failed to release timely payments of salary, and eventually, salary…

## 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)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/vishal-sethi-vs-colage-group-infrastructure-pvt-ltd-c5101510