# In the matter of ABC Consultants Private Limited C.P (IB) No. 1229-KB-2019

> NCLT judgment dated 2019-12-18. Citation: TCN-2019-NCLT-00115. The case involves an application filed by Aroon Kumar Aggarwal, an ex-employee of ABC…

- **Court:** NCLT
- **Order date:** 18 Dec 2019
- **Citation:** TCN-2019-NCLT-00115
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/abc-consultants-private-limited-cp-ib-no-1229-kb-2019-a924011d

## Summary

### Background

The case involves an application filed by Aroon Kumar Aggarwal, an ex-employee of ABC Consultants Private Limited, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the company. Aggarwal claimed to be an Operational Creditor, asserting that ABC Consultants owed him Rs. 33,42,002/- as unpaid salary, performance bonus, business development bonus, gratuity, and flexible pay basket. ABC Consultants contested the application, alleging that Aggarwal had engaged in fraudulent activities, forgery, and misappropriation of funds during his employment, leading to his termination and the filing of a police FIR against him.

## Facts

Aroon Kumar Aggarwal, an ex-employee of ABC Consultants Private Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, claiming to be an Operational Creditor. He sought initiation of CIRP against ABC Consultants for an alleged unpaid debt of Rs. 33,42,002/-, comprising salary, bonus, and other employment benefits. Aggarwal's employment agreement was dated June 20, 2003, and he was promoted to Executive Director on April 1, 2014. His services were terminated on August 16, 2016, due to alleged fraudulent activities. ABC Consultants, in response, stated that an internal audit revealed that Aggarwal had engaged in forgery, manipulation, and misappropriation of funds, causing significant losses to the company. The Corporate Debtor also

…

## Issues and analysis

### Issue 1: Whether the application for initiation of corporate insolvency resolution process by the …

**Ratio:** The Insolvency and Bankruptcy Code, 2016, is not intended to be used as a tool for

…

**Reasoning:** The court reasoned that the Operational Creditor's termination was based on allegations

…

**Interpretation:** Section 9 of the IBC allows an operational creditor to initiate CIRP if a debt

…

**Application:** In this case, the court applied the ratio by considering the fact that the

…

## Parties

- **Judges:** Jinan…; Harish Chander…
- **Appellants:** AROON KUMAR…
- **Respondents:** ABC Consultants…; ABC Consu…

## Timeline

- **2003-06-20 — Employment Agreement…**: Date of the employment agreement between…
- **2014-04-01 — Promotion to Executive…**: Aroon Kumar Aggarwal was promoted to…

## 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)

---

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/nclt-chandigarh/abc-consultants-private-limited-cp-ib-no-1229-kb-2019-a924011d