# In the matter of Fort Gloster Industries Ltd. CP (IB) No. 61-KB-2018

> NCLT judgment dated 2018-08-09. Citation: TCN-2018-NCLT-00958. The case originates from an application filed by Jayanta Kumar Panja, an ex-employee of Fort…

- **Court:** NCLT
- **Order date:** 9 Aug 2018
- **Citation:** TCN-2018-NCLT-00958
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/fort-gloster-industries-ltd-cp-ib-no-61-kb-2018-1aab7ac9

## Summary

### Background

The case originates from an application filed by Jayanta Kumar Panja, an ex-employee of Fort Gloster Industries Limited, under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate the Corporate Insolvency Resolution Process (CIRP) against the company. The claim is based on the non-payment of gratuity amounting to Rs. 1,13,946/-. The corporate debtor acknowledged the debt in a letter dated 03/04/2016 but failed to pay, citing inability due to the non-sanctioning of a BIFR Revival Scheme. The operational creditor contends that the company is liable to pay the outstanding amount towards gratuity.

## Facts

Jayanta Kumar Panja, an ex-employee of Fort Gloster Industries Limited, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate Corporate Insolvency Resolution Process (CIRP) against the company. The basis of the application is the non-payment of gratuity amounting to Rs. 1,13,946/-. Fort Gloster Industries Limited acknowledged the debt in a letter dated 03/04/2016 but failed to pay, citing its inability due to the non-sanctioning of a BIFR Revival Scheme. The applicant, Jayanta Kumar Panja, claims to be an operational creditor entitled to receive the gratuity. The corporate debtor contends that the application is not maintainable as the applicant is not an operational creditor and the debt is subject to the BIFR Revival Scheme.

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## Issues and analysis

### Issue 1: Whether the applicant, an ex-employee claiming unpaid gratuity, qualifies as an operational …

**Ratio:** Section 5(21) of the I&B Code, 2016, defines 'operational debt' as a claim in respect

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**Reasoning:** The court reasoned that any dues to an employee from an employer become a debt and come

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**Interpretation:** The interpretation of 'operational debt' and 'operational creditor' under

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**Application:** In this case, the applicant, Jayanta Kumar Panja, is an ex-employee of Fort

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## Parties

- **Judges:** Jinan…
- **Appellants:** Jayanta Kumar…
- **Respondents:** Fort Gloster…

## Timeline

- **2016-04-03 — Acknowledgment…**: Fort Gloster Industries Limited acknowledged…
- **2017-11-06 — Demand N…**: Jayanta Kumar Panja issued a demand…

## 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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