# In the matter of Devang Holdings Pvt. Ltd. Company Petition no. (IB)-616(ND)-2017

> NCLT judgment dated 2018-05-03. Citation: TCN-2018-NCLT-01464. The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code,…

- **Court:** NCLT
- **Order date:** 3 May 2018
- **Citation:** TCN-2018-NCLT-01464
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/devang-holdings-pvt-ltd-company-petition-no-ib-616nd-2017-a668a826

## Summary

### Background

The case involves an application filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules, 2016, seeking the initiation of the Corporate Insolvency Resolution Process (CIRP) against the respondent, M/s Devang Holdings Pvt. Ltd. The applicant, Kriti Paul Gera, claims to be an operational creditor due to unpaid salary for the months of May, August, November, December 2016, and January 2017. The respondent company has allegedly defaulted on these payments, leading to the filing of this application.

## Facts

Kriti Paul Gera, the applicant, filed a petition against M/s Devang Holdings Pvt. Ltd., the respondent, under Section 9 of the Insolvency and Bankruptcy Code, 2016. The applicant claimed unpaid salary for the months of May, August, November, December 2016, and January 2017. The applicant started working on 02.01.2016 in the respondent company as VP Community Building and the monthly salary of applicant was fixed at Rs. 90,000/- p.m. thereafter the applicant was appointed as chief community officer and monthly salary of applicant was increased to Rs. 1,00,000/-. The respondent company is incorporated under the provisions of the Companies Act, 1956, having its registered office at 1103, Tolstoy House, Tolstoy Marg, New Delhi-110001. The applicant sent a demand notice to

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## Issues and analysis

### Issue 1: Whether the applicant, Kriti Paul Gera, qualifies as an 'Operational Creditor' under the Insolvency …

**Ratio:** The definition of 'Operational Creditor' under Section 5(20) of the Insolvency and

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**Reasoning:** The court reasoned that since the applicant was an employee of the respondent company and

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**Interpretation:** The interpretation of 'Operational Creditor' and 'Operational Debt' is broad

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**Application:** The court applied the definitions to the facts, finding that the applicant's

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## Parties

- **Judges:** Ina Mal…; DeepaKr…
- **Appellants:** Kriti Pau…
- **Respondents:** M/s Devang…
- **Advocates:** Rishab B…; Ajay Arjun…; +1 more

## Timeline

- **2016-01-02 — Applicant Started…**: Applicant started working in the…
- **2017-11-25 — Demand Noti…**: Applicant sent a demand notice to the respondent company under Section 8 of the Code read…

## 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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