# In the matter of Aruna Hotels Ltd. IND-997-IB-CB-2017

> NCLT judgment dated 2017-06-13. Citation: TCN-2017-NCLT-00810. The case involves three company applications (C.P.478, C.P.479, and C.P.480 of 2017) filed…

- **Court:** NCLT
- **Order date:** 13 Jun 2017
- **Citation:** TCN-2017-NCLT-00810
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/aruna-hotels-ltd-ind-997-ib-cb-2017-18af1c63

## Summary

### Background

The case involves three company applications (C.P.478, C.P.479, and C.P.480 of 2017) filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Aruna Hotels Limited, the Corporate Debtor. C.P.478 was filed by Mr. D. Ramjee, an Operational Creditor, claiming arrears of salary, gratuity, and leave salary. The Corporate Debtor allegedly defaulted on these payments. The Petitioner sent a demand notice on 24.03.2017. The Corporate Debtor denied the liabilities. The applicant has been employed as Junior Assistant, then he rose to the level of Company Secretary. The details annexed to the letter dated 04.04.2014 also reflect the date of joining of the Petitioner in the Company on 11.05.1964 and date of leaving as 13.05.2013.

## Facts

Mr. D. Ramjee, an Operational Creditor, filed C.P.478 of 2017 against Aruna Hotels Limited, the Corporate Debtor, claiming arrears of salary, gratuity, and leave salary. The total amount claimed was Rs. 2,60,68,883/-. A demand notice was sent on 24.03.2017. The Corporate Debtor denied the liabilities. The Managing Director acknowledged the liability of clearing arrears of salary in a letter dated 04.04.2014. The petitioner was appointed on 10.01.1985. The petitioner joined the company on 11.05.1964 and left on 13.05.2013. The Corporate Debtor argued that the notice was not given as per Form 3, the matter is barred by limitation, and the matter is disputed. The court found the statutory notice compliant. The court also noted that the petition was filed on 03.04.2017,

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## Issues and analysis

### Issue 1: Whether the application filed by the Operational Creditor is maintainable under Section 9 of the …

**Ratio:** Section 9 of the Insolvency and Bankruptcy Code, 2016 allows an operational creditor to

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**Reasoning:** The court considered the submissions and found that the Operational Creditor had complied

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**Interpretation:** Section 9 provides the mechanism for operational creditors to trigger the CIRP

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**Application:** The court applied Section 9 to the facts, noting that the Operational Creditor

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## Parties

- **Judges:** Ch. Mohd Sharief…; S. VIJAYARA…
- **Appellants:** Mr.D.Ra…
- **Respondents:** Aruna Hotels…

## Timeline

- **2017-03-24 — Demand N…**: The Petitioner sent a demand…
- **2014-04-04 — Acknowledgment…**: The Managing Director acknowledged the…

## 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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