# In the matter of Doshion Water Solutions Private Limited MA 1041-2019 in CP No. 1752-IBC-NCLT-MB-MAH-2017

> NCLT judgment dated 2019-05-08. Citation: TCN-2019-NCLT-03409. The case involves a Miscellaneous Application (MA 1041/2019) filed in CP No.…

- **Court:** NCLT
- **Order date:** 8 May 2019
- **Citation:** TCN-2019-NCLT-03409
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/doshion-water-solutions-private-limited-ma-1041-2019-in-cp-no-1752-ibc-nclt-mb-m-03b9c018

## Summary

### Background

The case involves a Miscellaneous Application (MA 1041/2019) filed in CP No. 1752/IBC/NCLT/MB/MAH/2017 under Section 5(13) r/w 20(e) r/w 60(5) of the Insolvency and Bankruptcy Code, 2016. The Corporate Insolvency Resolution Process (CIRP) of Doshion Water Solutions Private Limited commenced on 31.08.2018, following the admission of a Section 7 application by Bank of Baroda, the Financial Creditor. The applicants, Mr. Ashit Doshi and Mr. Rakshit Doshi, who were initially employees and later directors of the Corporate Debtor, sought payment of their pending remuneration for the period from 01.09.2018 to 31.01.2019 and ensure timely payment of remuneration for the pending period of CIRP. They also requested reimbursement of expenses incurred while providing services to

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## Facts

The Corporate Insolvency Resolution Process (CIRP) of Doshion Water Solutions Private Limited commenced on 31.08.2018, pursuant to the admission of a Section 7 application filed by Bank of Baroda. Mr. Ketulbhai Ramubhai Patel was appointed as the Interim Resolution Professional. Mr. Ashit Doshi and Mr. Rakshit Doshi, the applicants, were initially employees and later directors of the Corporate Debtor from 1993 onwards. They continued to provide services after the initiation of CIRP. The applicants sought payment of their pending remuneration for the period from 01.09.2018 to 31.01.2019, claiming they had not received remuneration from the RP. The applicants' demanded remuneration was ₹7 lacs and ₹5.50 lacs per month respectively. The RP contended that the demanded

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## Issues and analysis

### Issue 1: Whether the Respondents are obligated to make payment of the pending remuneration to the Applicants …

**Ratio:** The Resolution Professional (RP) is obligated to keep the Corporate Debtor as a going

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**Reasoning:** The NCLT reasoned that the RP has a duty to maintain the Corporate Debtor as a going

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**Interpretation:** This issue involves interpreting the duties and obligations of the Resolution

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**Application:** The NCLT applied the principle that the RP is obligated to maintain the

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Ashit D…
- **Respondents:** Doshion Water…; Sh. Ketulbhai…
- **Advocates:** Natasha Dhruman…; Ami J…

## Timeline

- **2018-08-31 — Commencement…**: Corporate Insolvency Resolution Process of Doshion Water Solutions Private Limited…
- **2019-01-28 — CoC Meet…**: The Committee of Creditors (CoC) rejected the applicants' demand for their original…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 5(13) — Definitions](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-5)

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