# In the matter of Dishnet Wireless Limited MA 1053 of 2018 in CP 302-2018

> NCLT judgment dated 2018-10-16. Citation: TCN-2018-NCLT-00554. The case involves a Miscellaneous Application submitted by the Aircel Employees'…

- **Court:** NCLT
- **Order date:** 16 Oct 2018
- **Citation:** TCN-2018-NCLT-00554
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/dishnet-wireless-limited-ma-1053-of-2018-in-cp-302-2018-c4e0c714

## Summary

### Background

The case involves a Miscellaneous Application submitted by the Aircel Employees' Representatives (AER) concerning the insolvency proceedings of Dishnet Wireless Limited. The employees sought the tribunal's direction to the Committee of Creditors and the Resolution Professional to maintain transparency in the insolvency proceedings and to ensure that Dishnet Wireless Limited remains a 'going concern' to disburse dues to employees/workers as per law. The application highlights concerns regarding the lack of communication and confirmation regarding outstanding dues of approximately 125 Crores to the employees, leading to mistrust. The Debtor Company had moved an application under Section 10 of the Insolvency and Bankruptcy Code to declare itself insolvent, which was

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## Facts

Aircel Employees' Representatives (AER) filed a Miscellaneous Application concerning the insolvency proceedings of Dishnet Wireless Limited. The employees sought transparency and the continuation of the company as a 'going concern' to ensure the disbursement of their dues. Dishnet Wireless Limited, a national telecom operator with a significant customer base, had integrated with Airtel and BSNL before applying for insolvency under Section 10 of the Insolvency and Bankruptcy Code. The application was admitted on 12.03.2018, and an IRP was appointed. The employees alleged a lack of communication regarding outstanding dues of approximately 125 Crores. Meetings between the IRP and employee representatives discussed salary payments up to February 2018 and the issue of

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## Issues and analysis

### Issue 1: Whether the Committee of Creditors and the Resolution Professional should be directed to maintain …

**Ratio:** The principle of transparency in insolvency proceedings is crucial to protect the

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**Reasoning:** The court noted the employees' concerns regarding the lack of communication and

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**Interpretation:** This issue highlights the importance of open communication and information

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**Application:** The court directed the Resolution Professional to take steps to arrange funds

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Aircel Employees'…
- **Respondents:** Dishnet Wireless…

## Timeline

- **2018-09-25 — Application S…**: Miscellaneous Application submitted by Aircel Employees' Representatives on behalf of the…
- **2018-02-28 — Debtor Company Moves…**: The Debtor Company moved an Application u/s.10 of The Code to declare itself Insolvent to…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 10 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-10)

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