# 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-03401. The case involves a Miscellaneous Application (MA 1041/2019) filed in CP No.…

- **Court:** NCLT
- **Order date:** 8 May 2019
- **Citation:** TCN-2019-NCLT-03401
- **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-6ac0913e

## 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 filed by Bank of Baroda, a 'Financial Creditor'. Mr. Ketulbhai Ramubhai Patel was appointed as the Interim Resolution Professional (IRP). The applicants, initially employees and later directors of the Corporate Debtor, sought payment of pending remuneration from 01.09.2018 to 31.01.2019 and timely payment of future remuneration.

## 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 by Bank of Baroda. Mr. Ketulbhai Ramubhai Patel was appointed as the Interim Resolution Professional (IRP). 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 to the Corporate Debtor after the initiation of CIRP. The applicants sought payment of pending remuneration for the period from 01.09.2018 to 31.01.2019. The RP contended that the applicants' demanded remuneration (₹7 lacs and ₹5.50 lacs respectively) was too high given the decline in the Corporate Debtor's business.

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## Issues and analysis

### Issue 1: Whether the Applicants are entitled to receive their pending remuneration for the period they …

**Ratio:** The Resolution Professional (RP) is under an obligation to keep the Corporate Debtor as a

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**Reasoning:** The court reasoned that manpower is a resource of the Corporate Debtor and is essential

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**Interpretation:** This interprets the RP's duty to maintain the Corporate Debtor as a going

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**Application:** The court applied this reasoning to the facts by ordering the RP to release a

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## Parties

- **Judges:** M.K. Sh…
- **Appellants:** Ashit D…
- **Respondents:** Doshion Water…; Sh. Ketulbhai…

## Timeline

- **2018-08-31 — Commencement…**: Corporate Insolvency Resolution Process of Doshion Water Solutions Private Limited…
- **2018-09-01 — Period of Pending…**: Applicants sought payment of…

## 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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