# In the matter of Arch Infra Projects Private Limited CP No. 222-IBC-NCLT-MB-MAH-2018

> NCLT judgment dated 2018-04-09. Citation: TCN-2018-NCLT-01575. The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016,…

- **Court:** NCLT
- **Order date:** 9 Apr 2018
- **Citation:** TCN-2018-NCLT-01575
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/arch-infra-projects-private-limited-cp-no-222-ibc-nclt-mb-mah-2018-7dc74b15

## Summary

### Background

The case involves an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, by Mr. Ajit Madhukar Darvatkar, an Operational Creditor, against M/s. Arch Infra Projects Nirman Private Limited, the Corporate Debtor, for unpaid salary. The Operational Creditor was appointed as Project Manager by the Debtor on 19.04.2006, with a consolidated salary of ₹15,000 per month, later revised to ₹50,000 per month from April 2007 to July 2011. The Operational Creditor resigned on 31.03.2017, which was accepted by the Debtor on 04.04.2017. Despite demands, the Debtor failed to pay the outstanding salary from July 2013 to March 2017, amounting to ₹22,44,297.

## Facts

Mr. Ajit Madhukar Darvatkar was employed by M/s. Arch Infra Projects Nirman Private Limited as a Project Manager, starting on 19.04.2006. His initial salary was ₹15,000 per month, which was later increased to ₹50,000 per month between April 2007 and July 2011. Mr. Darvatkar resigned on 31.03.2017, and his resignation was accepted on 04.04.2017. Despite repeated demands, the company failed to pay his salary for the period from July 2013 to March 2017, resulting in an outstanding amount of ₹22,44,297. The company acknowledged its financial difficulties and inability to pay the debt in communications between April 2017 and December 2017. A demand notice was issued on 17.01.2018 under Section 8 of the Insolvency and Bankruptcy Code, but the company neither paid the amount

…

## Issues and analysis

### Issue 1: Whether the unpaid salary of the Operational Creditor constitutes an 'Operational Debt' as defined …

**Ratio:** An 'Operational Debt' is defined under Section 5(21) of the Insolvency and Bankruptcy

…

**Reasoning:** The Adjudicating Authority considered the evidence on record, including the appointment

…

**Interpretation:** The interpretation of 'Operational Debt' includes debts arising from employment

…

**Application:** The Adjudicating Authority applied the definition of 'Operational Debt' to the

…

## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Ajit Madhukar…
- **Respondents:** M/s. Arch Infra…

## Timeline

- **2006-04-19 — Appointment of…**: Mr. Ajit Madhukar Darvatkar was…
- **2017-03-31 — Resignation of…**: Mr. Ajit Madhukar Darvatkar…

## 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/arch-infra-projects-private-limited-cp-no-222-ibc-nclt-mb-mah-2018-7dc74b15