# In the matter of Juggilal Kamlapat Jute Mills Ltd. CP (IB) No. 22-ALD-2018

> NCLT judgment dated 2018-07-04. Citation: TCN-2018-NCLT-01200. The case involves a Company Petition (IB) No. 22/ALD/2018 filed under Section 9 of the…

- **Court:** NCLT
- **Order date:** 4 Jul 2018
- **Citation:** TCN-2018-NCLT-01200
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-chandigarh/juggilal-kamlapat-jute-mills-ltd-cp-ib-no-22-ald-2018-1b590f3b

## Summary

### Background

The case involves a Company Petition (IB) No. 22/ALD/2018 filed under Section 9 of the Insolvency and Bankruptcy Code, 2016, read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rule, 2016. The operational creditor, Shri Kant, initiated the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor, M/s Juggilal Kamlapat Jute Mills Company Limited (now Geo Jute Limited). The operational creditor was a workman who worked with the corporate debtor as Banbhadni-Mazdoor from 1979 to 2012. The corporate debtor had filed a reference before BIFR in 1994, and entered into a work agreement with the worker's union in 1995, deducting 10% of wages as 'Workers Deposit'. The operational creditor retired and requested payment,

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## Facts

Shri Kant, the operational creditor, filed a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, against M/s Juggilal Kamlapat Jute Mills Company Limited (now Geo Jute Limited), the corporate debtor. Shri Kant was a workman who worked with the corporate debtor from 1979 to 2012. In 1994, the corporate debtor filed a reference before the Board for Industrial and Financial Reconstruction (BIFR). In 1995, a work agreement was made with the worker's union, deducting 10% of wages as 'Workers Deposit' to be repaid after four years. After retirement, Shri Kant requested payment of gratuity and deposit amounts. He filed P.G Suit No.253/2012 and obtained an award in his favor under the Gratuity Act, 1972. He sent a demand notice dated 28.12.2017 for

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## Issues and analysis

### Issue 1: Whether the application under Section 9 of the IBC, 2016 is maintainable given the payment made by …

**Ratio:** The ratio is based on the Supreme Court's direction in Mobilox Innovations Private

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**Reasoning:** The court reasoned that the corporate debtor had already made payments in accordance with

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**Interpretation:** The interpretation of Section 9(5)(2)(d) of the IBC, as clarified by the

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**Application:** In this case, the court applied the ratio and reasoning to the specific facts

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## Parties

- **Judges:** V. P. S…; Saroj Ra…
- **Appellants:** Kant…
- **Respondents:** M/s. Juggilal…

## Timeline

- **1979-09-01 — Operational Creditor's…**: Shri Kant started working with the…
- **1994-12-16 — BIFR Refe…**: Corporate Debtor filed a…

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